[Federal Register Volume 85, Number 136 (Wednesday, July 15, 2020)]
[Notices]
[Pages 42890-42914]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15037]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6191-N-01]


Section 8 Housing Choice Vouchers: Implementation of the Housing 
Choice Voucher Mobility Demonstration

AGENCY: Office of the Assistant Secretary for Public and Indian Housing 
(PIH), Department of Housing and Urban Development (HUD).

ACTION: Notice.

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SUMMARY: This notice implements the Housing Choice Voucher (HCV) 
mobility demonstration (``demonstration'') authorized by the 
Consolidated Appropriations Act, 2019 (``2019 Appropriations Act'') and 
the Further Consolidated Appropriations Act, 2020 (``2020 
Appropriations Act''). Throughout this notice, the 2019 Appropriations 
Act and 2020 Appropriations Act are referred to together as the 
``Appropriations Acts.'' The notice defines Public Housing Agency (PHA) 
eligibility criteria; establishes the application process, including 
setting forth the factors HUD will employ in rating and ranking PHA 
applications; and explains the special rules and requirements 
applicable to PHAs selected for participation in the demonstration. In 
addition, the notice identifies the specific waivers and alternative 
requirements established by the Secretary for the demonstration.

DATES: Application Due Date: October 13, 2020.

FOR FURTHER INFORMATION CONTACT: Rebecca Primeaux, Director, Housing 
Voucher Management and Operations Division, Department of Housing and 
Urban Development, 451 Seventh Street SW, Room 4214, Washington, DC 
20410, telephone number (202) 708-1112. (This is not a toll-free 
number.) Individuals with hearing or speech impediments may access this 
number via TTY by calling the Federal Relay during working hours at 
800-877-8339. (This is a toll-free number). HUD encourages submission 
of questions about the demonstration be sent to 
[email protected].

SUPPLEMENTARY INFORMATION: 

Background

    The 2019 Appropriations Act, signed into law on February 15, 2019, 
made available $25 million to carry out an HCV mobility demonstration 
(see paragraph (8)) under the heading ``Tenant-Based Rental 
Assistance''). The 2020 Appropriations Act, signed into law on December 
20, 2019, made an additional $25 million available for the 
demonstration. Of these amounts, up to $10 million is for incremental 
voucher assistance under Section 8 of the United States Housing Act of 
1937 (``the 1937 Act'') (42 U.S.C. 1437f(o)), with the remainder of 
funding being available for mobility-related services. The 2019 
Appropriations Act also makes available $3 million under a separate 
heading for a research evaluation.
    Incremental voucher assistance for the HCV Mobility Demonstration 
Vouchers (MDVs) and mobility-related services made available under this 
notice must only be provided to families with children.
    The primary purposes of the demonstration are to provide voucher 
assistance and mobility-related services to families with children to 
encourage such families to move to lower-poverty areas, to expand their 
access to opportunity areas, and to evaluate the effectiveness of the 
strategies pursued under the demonstration.
    The 2019 Appropriations Act authorizes the HUD Secretary to waive 
or specify alternative requirements for certain portions of Section 8 
of the 1937 Act in order to facilitate implementation and 
administration of the Regional Housing Mobility Plans (RHMPs) that are 
required of the demonstration-participating PHAs.
    HUD must submit a report to Congress within five years after the 
implementation of the demonstration. The demonstration is effective 
until October 1, 2028. After October 1, 2028, vouchers will no longer 
be restricted to the purposes under which they were

[[Page 42891]]

made available for this demonstration and will become part of a PHA's 
regular HCV program.

I. Demonstration Program Design

Background

    Recent research shows that growing up in neighborhoods with lower 
levels of poverty improves children's academic achievement and long-
term chances of success, and reduces intergenerational poverty.\1\ 
Children who move to low-poverty neighborhoods have also been shown to 
experience lower rates of hospitalizations, lower hospital spending, 
and some changes in mental health over the long-term follow-up.\2\ 
Adults given the chance to move to low-poverty neighborhoods experience 
reductions in extreme obesity and diabetes.\3\
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    \1\ Chetty, Hendren, and Katz, ``The Effects of Exposure to 
Better Neighborhoods on Children: New Evidence from the Moving to 
Opportunity Experiment,'' American Economic Review, April 2016. 
Chetty and Hendren, ``The Effects of Neighborhoods on 
Intergenerational Mobility I: Childhood Exposure Effects and II: 
County Level-Estimates,'' Quarterly Journal of Economics, 2018.
    \2\ Pollack, Blackford, Du, et al. ``Association of Receipt of a 
Housing Voucher With Subsequent Hospital Utilization and Spending,'' 
JAMA. 322(21):2115-2124. doi:10.1001/jama.2019.17432, 2019. Kessler, 
Duncan, Gennetian, et al. ``Associations of housing mobility 
interventions for children in high-poverty neighborhoods with 
subsequent mental disorders during adolescence,'' JAMA; 311(9):937-
948. doi:10.1001/jama.2014. 607, 2014, retracted and replaced June 
17, 2016.
    \3\ Ludwig, Sanbonmatsu, Gennetian, et al. ``Neighborhoods, 
obesity, and diabetes--a randomized social experiment,'' New England 
Journal of Medicine; 365(16):1509-1519. doi:10.1056/NEJMsa1103216, 
2011.
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    The HCV program offers families with vouchers the opportunity to 
live in a neighborhood of their choice, including low-poverty, 
opportunity neighborhoods. Yet, families with HCVs may encounter 
barriers to using their vouchers in communities with expanded 
opportunities. Some barriers may be financial, such as saving enough 
money for a security deposit or maintaining a positive credit score. 
Other barriers may include inadequate time to find a unit, landlord 
unwillingness to rent to voucher holders, or limited awareness of 
neighborhood amenities, such as the location of high-performing 
schools.
    Some PHAs and nonprofits have implemented ``housing mobility 
programs'' to help reduce barriers for families with vouchers to live 
in neighborhoods of their choice, including opportunity neighborhoods 
with high-performing schools, access to jobs, low crime, parks and 
other amenities.\4\ These programs generally include a comprehensive 
set of services offered to families as well as administrative policy 
changes. Although there is no universally agreed upon definition of a 
housing mobility program, these programs often include ``mobility-
related services'' such as pre- and post-move supports, family 
financial assistance (e.g. security deposits), landlord outreach, and 
housing search assistance.\5\ They also include administrative policies 
such as adequate payment standards in opportunity areas and extended 
voucher search time.
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    \4\ The Moving to Opportunity (MTO) experiment is among the most 
well-known housing mobility interventions. MTO was authorized by 
Congress in 1992 and made use of HCVs, in combination with housing 
search and counseling services, to assist low-income families to 
move from some of America's most distressed urban neighborhoods to 
lower-poverty communities. In addition to the MTO experiment, large 
housing mobility programs have been implemented in Chicago, Dallas, 
and Baltimore, among other locations.
    \5\ There is no universally agreed upon definition for 
opportunity area. Some definitions focus exclusively on poverty, 
while others may look at public transportation, racial and economic 
diversity, child-care, health care, and/or a variety of other 
neighborhood amenities. For the purposes of this demonstration, HUD 
will use its own definition of opportunity area which is described 
in Section VIII Application Format, Funding Application Form HUD-
52515, Part G, Soundness of Approach, Subpart 5: Proposed 
Methodology and Opportunity Areas.
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    Building on recent research, and evidence from prior and existing 
housing mobility programs, the Seattle Housing Authority and King 
County Housing Authority partnered with researchers from Opportunity 
Insights, to implement and evaluate a housing mobility program they 
named ``Creating Moves to Opportunity (CMTO).'' The researchers sought 
to uncover whether families with vouchers faced barriers that prevented 
them from moving to opportunity areas, or if families ``prefer to live 
in neighborhoods that offer limited opportunities for upward 
mobility.'' \6\
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    \6\ Bergman, Chetty, DeLuca, Hendren, Katz, and Palmer, 
``Creating Moves to Opportunity: Experimental Evidence on Barriers 
to Neighborhood Choice,'' August 2019. https://opportunityinsights.org/wp-content/uploads/2019/08/cmto_paper.pdf.
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    To answer these questions, the Seattle Housing Authority and King 
County Housing Authority implemented a randomized controlled trial 
(RCT) and offered a set of housing mobility-related services to 
families in a treatment group and business-as-usual services to 
families in a control group. RCTs are generally understood to be one of 
the most reliable research methods to study the impacts of a 
``treatment,'' by isolating the effects of the treatment by comparing a 
randomly assigned treatment group against a randomly assigned control 
group. In an RCT, the treatment group and control group should be as 
similar as possible to better understand the impacts of a treatment.
    Based on the initial report provided by the researchers, the 
provision of mobility-related services seemingly helped create strong 
gains in the number of families who moved to opportunity areas.'' \7\ 
Researchers and the housing agencies are now expanding their research 
to see whether a selected set of services, offered at a lower cost, 
achieve similar results.
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    \7\ Id.
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    HUD recognizes there is compelling evidence to build upon to meet 
the goals of the demonstration. The initial CMTO results are promising, 
but more research is needed to understand if these interventions work 
similarly in other locations and contexts. Through the demonstration, 
HUD will implement, test, and evaluate whether housing mobility 
programs intended to increase family choice, expand access to 
opportunity neighborhoods. HUD will draw upon the program experience, 
to the extent possible, of the CMTO effort implemented by the Seattle 
Housing Authority and King County Housing Authority.\6\
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    \6\ For example, the demonstration will include post-move 
supports while CMTO does not include them as part of their mobility-
related services.
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    Throughout this notice, while HUD uses technical language to 
describe the format and design of the study, HUD recognizes that 
research participants being studied are autonomous families and 
children who are entitled to respect. HUD requires, and PHAs must 
require, that each family involved in the study gives voluntary and 
informed consent. HUD and PHAs will protect the privacy of each family 
involved in the study and will seek informed, voluntary, and written 
consent for the use or reproduction of any details about a family.

Overview

    This demonstration will allow participating PHAs throughout the 
country to implement housing mobility programs by offering mobility-
related services to increase the number of voucher families with 
children living in opportunity areas. Only families with children may 
participate in the demonstration. Throughout the notice, HUD uses the 
term ``families'' or ``families with children'' interchangeably, since 
only families with children may participate in the demonstration.

[[Page 42892]]

    In addition to offering mobility-related services, participating 
PHAs will work together in their regions to adopt administrative 
policies that further enable housing mobility, increase landlord 
participation, and reduce barriers for families to move across PHA 
jurisdictions through portability.
    Although the demonstration is intended to increase housing choice 
for families in the HCV program, especially in opportunity areas, the 
demonstration will not require voucher holders to move to designated 
opportunity areas, limit access to other neighborhoods, or allow for 
the termination of assistance for lack of participation in mobility-
related services.
    To be eligible for the demonstration, PHAs must meet eligibility 
criteria, described in Section V Application Process, of this notice. 
The demonstration includes four statutory categories of eligibility. 
These are discussed in Section V Application Process and Section VII 
Application Format. They are Category A: PHA Partnerships; Category B: 
Consortia with High-Performing Family Self-Sufficiency (FSS) Program; 
Category C: Consortia with Small PHA; and Category D: Single Agency. As 
a result of these eligibility categories, HUD anticipates most 
applications for the demonstration will come from multiple PHAs within 
a region submitting one application jointly. References to ``PHAs'' or 
``participating PHAs'' or ``PHA sites'' generally mean the successful 
applicant sites, which may or may not include more than one PHA. When 
PHAs apply jointly, HUD requires one PHA to be designated the lead PHA. 
The lead PHA will be awarded the mobility-related service funding. 
However, all PHAs, whether applying alone or as part of a joint 
application, may request MDVs.
    The demonstration is anticipated to be implemented by PHAs over the 
course of six years. If selected, PHAs will be required to, among other 
things:
     Offer and provide a set of agreed upon services and adopt 
certain administrative policies (described in Section III Mobility-
related Services);
     Participate in the research evaluation (described in 
Section II Research Evaluation); and
     Recruit and enroll families to participate in the 
demonstration (described in Section II Research Evaluation).

II. Research Evaluation

    The Appropriations Acts require HUD to evaluate the effectiveness 
of the strategies pursued under the demonstration. To meet this 
requirement, HUD will conduct an independent evaluation to assess the 
extent to which mobility-related services facilitate moves to 
opportunity areas, and the length of time families remain in 
opportunity areas. HUD will develop a final research evaluation within 
the five years after full implementation of the demonstration. HUD will 
disseminate any interim findings as required by the statute.
    HUD intends to conduct a randomized controlled trial (RCT) at all 
PHAs participating in the demonstration.\7\ Families with children 
receiving voucher assistance that agree to participate in the 
demonstration will be randomly assigned to a treatment group that 
receives mobility-related services or a control group that receives HCV 
program business-as-usual services already offered by participating 
PHAs to all HCV applicants and participants.
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    \7\ See Section I Demonstration Program Design for a definition 
of randomized controlled trial.
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    The demonstration will have two different treatment groups. The 
first treatment group will receive comprehensive mobility-related 
services (CMRS). HUD estimates that the CMRS treatment group will be 
implemented in years one through six of the demonstration, with year 
one largely being a planning and piloting phase. The second treatment 
group will receive a subset of the comprehensive housing mobility-
related services, which HUD calls selected mobility-related services 
(SMRS).\8\ HUD estimates that the second treatment group, SMRS, will be 
added in years three through six of the demonstration, with year three 
largely being a planning and piloting phase for SMRS. Both treatments, 
CMRS and SMRS, will be offered in years four through six. For a sample 
timeline, please see Table 3: Potential Minimum Enrollment Schedule at 
Each PHA Site.
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    \8\ See Section III Mobility-related Services, for the complete 
explanation of the term, ``Selected Mobility-Related Services 
(SMRS).''
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    The demonstration will also have a control group. The control group 
will be recruited and enrolled concurrently with recruitment and 
enrollment for the treatment groups.
    The demonstration will recruit and enroll two different types of 
families with children for both treatment groups and the control group: 
Existing voucher holders and new admissions. These are described in 
further detail in the ``Demonstration Size'' section.
    PHAs that participate in the demonstration must agree to implement 
both the CMRS and SMRS treatments, as well as recruit and enroll both 
types of families with children. Participating PHAs will work 
collaboratively with HUD to implement the demonstration, including 
designing, planning, and piloting the demonstration program; 
recruiting, enrolling, and randomly assigning families; and, providing 
mobility-related services.

PHA Responsibilities Related to Research

    PHAs participating in the demonstration will have a range of 
responsibilities related to the research evaluation. These include, but 
are not limited to, enrolling families to participate, adhering to 
random assignment protocols, collecting data, and communicating 
regularly with HUD.
    PHAs will be required to enroll a minimum number of families with 
children to participate in treatment and control groups over the 
estimated six years of the demonstration. (This is illustrated further 
in Table 3: ``Potential Minimum Enrollment Schedule at Each PHA Site.) 
In their application, PHAs will propose the number of families they 
want to enroll. After selection, HUD will work closely with PHAs to 
finalize the number of families to be enrolled, based on the final 
award made to the PHA and the agreed upon budget for mobility-related 
services. HUD also will work with PHAs to develop a schedule for 
enrollment. PHAs will not be required to continue to enroll families, 
if they no longer have enough funding to provide mobility-related 
services (e.g. original mobility-related service cost estimates were 
too low or other unforeseen circumstances).
    By responding to this notice, participating PHAs agree that they 
will implement random assignment protocols established by HUD. Under 
these protocols, PHAs will inform families about the demonstration, and 
ask families with children if they consent to being part of the 
demonstration. If the family consents, the PHA will randomly assign the 
family to a treatment or control group. Participation in the 
demonstration is voluntary and families may decline to participate at 
any time. PHAs shall not require families to move to an opportunity 
area or participate in any services in order to retain or obtain a 
voucher.
    In order to evaluate the impact of the demonstration over time, 
families that consent to participate will agree to: (a) Have their 
administrative data linked with other administrative datasets and allow 
their data to be tracked over time; (b) participate in an initial 
survey; and, (c) be contacted for future surveys. In addition to 
informed consent, each

[[Page 42893]]

family should be given sufficient information to make an informed 
choice about if, when, and how to participate in each stage of the 
study process. All applicable informed consent protocols and forms will 
be developed by HUD.
    In addition to the activities described above, PHAs may be required 
to:
     Administer informed consent to families participating in 
the demonstration;
     Administer a baseline data collection at time of consent 
and at other intervals;
     Track services offered, taken up, and the cost of such 
services on a per-family basis;
     Ensure PHA staff and service providers are available for 
interviews; and
     Facilitate communication between HUD and families if 
necessary.
    All described activities may or may not be required depending on 
the final research evaluation design. To help minimize administrative 
burden on PHA staff, service providers, and families participating in 
the demonstration, HUD intends to contract with a technical assistance 
(TA) provider that will support PHA implementation. For example, the TA 
provider might be tasked with developing a suite of products to be used 
and customized for providing mobility-related services across selected 
sites. The TA provider might also help coordinate policies and 
procedures across selected sites, among other tasks. The provider may 
offer training and resources for PHAs selected to participate in the 
demonstration, including around research activities. Finally, PHAs are 
eligible to receive start-up funding for the demonstration, described 
further in Section IV Award Description.
    A summary of the tasks by demonstration year are included in the 
following table:

     Table 1--Summary of Key Implementation and Evaluation Tasks by
                           Demonstration Year
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                                      Key implementation and evaluation
        Demonstration year                        tasks \9\
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Year 1............................   Planning and piloting of
                                     CMRS at PHA sites.
                                     TA contractor assisting
                                     PHAs with implementation.
                                     Evaluator finalizes
                                     research design and work plan.
Year 2............................   CMRS enrollment and
                                     services begin at PHA sites.
                                     TA contractor assisting
                                     PHAs with implementation.
                                     Evaluator executes research
                                     design.
Year 3............................   CMRS enrollment and
                                     services continue at PHA sites.
                                     TA contractor assisting
                                     PHAs with implementation.
                                     Evaluator executes research
                                     design.
                                     Evaluator produces rapid-
                                     cycle evaluation of CMRS to inform
                                     what components of SMRS should be
                                     implemented.
                                     Planning and piloting of
                                     SMRS at PHA sites.
Year 4............................   CMRS enrollment and
                                     services continue at PHA sites.
                                     SMRS enrollment and
                                     services begin at PHA sites.
                                     TA contractor assisting
                                     PHAs with implementation.
                                     Evaluator executes research
                                     design.
                                     Demonstration is considered
                                     ``fully implemented'' once SMRS
                                     enrollment and services begin.
Year 5............................   CMRS enrollment and
                                     services continue.
                                     SMRS enrollment and
                                     services continue.
                                     TA contractor assisting
                                     PHAs with implementation.
                                     Evaluator executes research
                                     design.
                                     Evaluator produces the
                                     first CMRS Process and Impact
                                     Evaluation Report to be submitted
                                     to Congress after HUD review and
                                     approval.
Year 6............................   CMRS enrollment and
                                     services continue until end of Year
                                     6.
                                     SMRS enrollment and
                                     services continue until end of Year
                                     6.
                                     TA contractor assisting
                                     PHAs with implementation.
                                     Evaluator executes research
                                     design.
Years 7-9.........................   Evaluator begins drafting
                                     final report.
                                     Evaluator continues to
                                     track families who moved in Years 1-
                                     6.
                                     Evaluator provides HUD
                                     final report.
                                     Final report is published.
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\9\ HUD has developed scopes of services for an evaluation contract and
  a technical assistance contract based on available funding. Certain
  components of the demonstration evaluation and technical assistance
  are subject to funding availability in future fiscal years.

Families Eligible for Demonstration

    The Appropriations Acts require that demonstration participants be 
families with children, which are families with at least one child aged 
17 and under. The demonstration will be open to families with children 
already participating in the HCV program and interested in moving, 
called ``existing voucher holders'' throughout this notice. The 
demonstration also will be open to families with children who are new 
admissions to the HCV program and are selected off the participating 
PHA waiting lists.\10\
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    \10\ See Section II Research Evaluation, Required HCV Waiting 
List Preference for more information about demonstration waiting 
list requirements.
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Demonstration Size

    Using publicly available data on costs for mobility-related 
services, HUD estimates that there is enough available mobility-related 
service funding to provide services to at least 9,500 families.
    As long as the participating PHA sites are able to enroll the 
minimum number of families participating PHAs do not need to administer 
a specific number of vouchers to be eligible for the demonstration. The 
total number of families enrolled in the evaluation at each site will 
vary depending on the total number of awards, and likely will be higher 
than the minimum number of required participants. For the evaluation to 
detect the impacts of the CMRS and SMRS treatments, HUD estimated the 
minimum number of HCV families with children that must be enrolled 
(sample

[[Page 42894]]

size) at each participating PHA site. Preliminary calculations indicate 
that a minimal sample size of 1,950 families with children at each PHA 
site, across both treatment groups and the control group, is necessary 
to detect the effects of the treatments.
    As described previously, HUD anticipates that the demonstration 
will be implemented over a six-year period. Over this time frame, HUD 
requires that each participating PHA site enroll a minimum of 650 
families for CMRS, a minimum of 650 families for SMRS, and a minimum of 
650 families for the control group (minimum total of 1,950 families). 
To enroll the minimum number of families, participating PHA sites 
likely will need to conduct outreach to more than the minimum number of 
families, since a certain percentage of families are likely to decline 
enrolling.\11\ Although there is limited data on what percentage of 
families are likely to decline enrolling in the demonstration, HUD 
estimates more than 10 percent may decline enrollment.\12\
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    \11\ HUD reminds PHAs when conducting outreach that all 
materials, notices, and communications must be provided in a manner 
that is effective for persons with hearing, visual, and other 
communication-related disabilities consistent with Section 504 of 
the Rehabilitation Act and HUD's Section 504 regulation, and Titles 
II or III of the ADA and implementing regulations. Recipients must 
provide appropriate auxiliary aids and services necessary to ensure 
effective communication, which includes ensuring that information is 
provided in appropriate accessible formats as needed, e.g., Braille, 
audio, large type, assistive listening devices, and sign language 
interpreters, accessible websites and other electronic 
communications (See 24 CFR 8.6, 28 CFR 35.160, 28 CFR 36.303). PHAs 
also must take reasonable steps to ensure meaningful access to their 
programs and activities to limited English proficient (LEP) 
individuals. As an aid to recipients, HUD published Final Guidance 
to Federal Financial Assistance Recipients: Title VI Prohibition 
Against National Origin Discrimination Affecting Limited English 
Proficient Persons (LEP Guidance) in the Federal Register on January 
22, 2007 (72 FR 2732). LEP guidance and LEP information is available 
here: https://www.federalregister.gov/documents/2007/01/22/07-217/final-guidance-to-federal-financial-assistance-recipients-regarding-title-vi-prohibition-against.
    \12\ Bergman, Chetty, DeLuca, Hendren, Katz, and Palmer, 2019.
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    Table 2 shows the minimum number of families each participating PHA 
site must enroll in the demonstration. PHAs applying together under 
Category A: PHA Partnerships, Category B: Consortia with High-
Performing FSS Program, or Category C: Consortia with Small Agency, do 
not need to enroll the minimum number of families at each individual 
participating PHA. They are required to collectively enroll the minimum 
number of families across participating PHAs. (See Section VII 
Application Format for further information on these categories.)

                          Table 2--Minimum Required Enrolled Families at Each PHA Site
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                                                       CMRS            SMRS
                                                     treatment       treatment        Control
                                                      minimum         minimum         minimum
                  Voucher type                       number of       number of       number of         Total
                                                  families to be  families to be  families to be
                                                    enrolled by     enrolled by     enrolled by
                                                        PHA             PHA             PHA
----------------------------------------------------------------------------------------------------------------
Existing voucher holders........................             600             600             600           1,800
New admissions..................................              50              50              50             150
                                                 ---------------------------------------------------------------
    Total.......................................             650             650             650           1,950
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    Table 3 shows a potential enrollment schedule for a participating 
PHA site that only enrolls the minimum number of families. In their 
applications, PHAs will estimate the number of families they want to 
enroll. HUD anticipates that some participating PHA sites will propose 
to enroll more families.

                         Table 3--Potential Minimum Enrollment Schedule at Each PHA Site
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                                                                                               Yearly total  new
                                                           Control  group   Yearly total  new      treatment
                          CMRS new          SMRS new             new           enrollment          (families
                         enrollment        enrollment        enrollment       (treatment &      receiving  CMRS
                                                                                control)            or SMRS)
----------------------------------------------------------------------------------------------------------------
Year 1...............  Planning and pilot
----------------------------------------------------------------------------------------------------------------
Year 2...............             130  N/A...............             130  260...............  130
Year 3...............             130  Planning and pilot             130  260...............  130
Year 4...............             130  216...............             130  476...............  346
Year 5...............             130  217...............             130  477...............  347
Year 6...............             130  217...............             130  477...............  347
                      ------------------------------------------------------------------------------------------
    Total............             650  650...............             650  1,950 (cumulative)  1,300
                                                                                                (cumulative)
----------------------------------------------------------------------------------------------------------------

Existing Voucher Holders
    To meet the minimum enrollment requirements, PHAs will primarily 
recruit and enroll existing voucher holders to participate in the 
demonstration.\13\ Recruitment and enrollment of existing voucher 
holders likely will occur at recertification or when a family indicates 
interest in moving. Once a family with children indicates they are 
interested in moving, they will be asked if they are interested in 
participating in the demonstration and given the opportunity to provide 
informed consent to participate.
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    \13\ In addition to families with children with regular tenant-
based vouchers, existing voucher holders includes families with 
children assisted with project-based vouchers under Section 8(o)13.
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    Families who consent to participate will be randomly assigned into 
one of the treatment groups or the control

[[Page 42895]]

group. All families within the same treatment group must be offered the 
same set of services. Families randomly assigned to the control group 
will not receive any mobility-related services but will receive HCV 
program business-as-usual services already offered by participating 
PHAs for moving families.
New Admissions
    The statute authorized up to $10 million for new incremental 
vouchers, called MDVs. HUD anticipates about 1,000 new MDVs will be 
made available under this notice. It is required that all MDVs will be 
used for new admissions for the treatment groups. PHAs applying for the 
demonstration must request MDVs which will be competitively awarded 
among multiple PHA awardees.\14\ PHAs must agree to make some regular 
turnover vouchers available for new admissions. HUD estimates that the 
number of regular turnover vouchers the PHA must make available will be 
half the number of the MDVs they are awarded (e.g. if the PHA is 
awarded 100 MDVs, they must make 50 regular turnover vouchers 
available).
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    \14\ See Section VII Application Format, Funding Application HUD 
Form-52515, Part F Need/Explanation of the Problem for more 
information.
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    HUD will work with PHAs to develop a waiting list selection plan 
for the demonstration. For the MDV and regular turnover vouchers, 
families will be selected off the waiting list in accordance with the 
participating PHA's preferences, as well as a required preference 
discussed in the next section.
    After selection, families will be asked if they are interested in 
participating in the demonstration and given the opportunity to provide 
informed consent to participate. The Appropriations Acts require that 
MDVs be for families with children participating in the demonstration 
and shall continue to remain available for families with children upon 
turnover during the period of the demonstration. Therefore, to receive 
an MDV, a family selected from the waiting list must consent to 
participate in the demonstration. If the family selected from the 
waiting list for an MDV does not provide consent to participate in the 
demonstration, they will be placed back on the waiting list.
    If the family consents, they will be randomly assigned into one of 
the treatment groups or the control group. All families assigned to the 
same treatment group must be offered the same set of services. Families 
assigned to the treatment groups will receive an MDV. Families assigned 
to the control group will receive a turnover voucher. Families randomly 
assigned to the control group will not receive any mobility-related 
services but will receive HCV program business-as-usual services 
already offered by participating PHAs for moving families.
    Across all participating PHA sites, approximately 1,500 total new 
admission families will participate in the demonstration. About 1,000 
MDVs will be assigned to one of the treatment groups and about 500 
regular turnover vouchers provided by PHAs will be assigned into the 
control group.
Required HCV Waiting List Preference
    As described previously, the Appropriations Acts require that 
participants in the demonstration must be families with children. Most 
participants in the demonstration will be existing voucher holders with 
children.\15\ However, some participants in the demonstration will be 
new admissions to the HCV program. Most PHAs maintain a waiting list 
for admission into the HCV program. Under program regulations, PHAs may 
use a system of waiting list preferences for the selection of families 
admitted to the program.\16\
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    \15\ The waiting list is only applicable to applicants for the 
HCV program. There is no waiting list for existing voucher holders.
    \16\ 24 CFR 982.207.
---------------------------------------------------------------------------

    Section 235(c)(6) of Division G of the 2019 Appropriations Acts 
also allows for the ``establishment of priority and preferences for 
participating families, including a preference for families with young 
children, as such term is defined by the Secretary, based on regional 
housing needs and priorities.'' Given this authority, HUD is requiring 
that PHAs establish a waiting list preference, both for MDVs and for 
the number of regular turnover vouchers PHAs must make available for 
the demonstration.
    For MDVs awarded to participating PHAs, including any subsequent 
turnover of those vouchers, the PHA must adopt a waiting list 
preference. The waiting list preference is for families with at least 
one child aged 13 and under that live in census tracts with a family 
poverty rate of 30 percent or higher.\17\ Families that receive an MDV 
voucher will be randomly assigned to one of the treatment groups and 
will receive mobility-related services.
---------------------------------------------------------------------------

    \17\ The poverty rate for families is available in American 
Community Survey table S1702. To access the information at the 
census tract level 5-Year ACS Tabulations must be used. To access 
the latest available family poverty rate at the census tract level 
see: https://data.census.gov/cedsci/table?q=poverty%20rate&hidePreview=false&tid=ACSST5Y2018.S1702&t=Poverty&vintage=2018.
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    As described previously, PHAs must agree to make available some of 
their regular turnover vouchers for new admissions to the 
demonstration. HUD anticipates that PHAs will need to make available 
about half as many regular turnover vouchers as awarded MDVs for new 
admissions.
    For the regular turnover vouchers provided by PHAs for the 
demonstration, in order to fulfill elements of the demonstration's 
statutorily required evaluation design, PHAs must adopt the same 
preference for families with at least one child, aged 13 and under, who 
live in a census tract with a family poverty rate of 30 percent or 
higher. They must apply this limited preference to their regular 
turnover vouchers until enough families receiving these regular 
turnover vouchers have been randomly assigned to the control group.\18\
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    \18\ An example of a limited preference is when a PHA limits the 
number of families with young children that qualify for the 
preference to a specific number of families. For information on a 
limited preference in a different context please see PIH Notice 
2013-15.
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    If a PHA does not have enough families on the waiting list that 
meet the required preference, the PHA will select the next available 
family with at least one child aged 17 or under from the waiting list. 
PHAs must have the administrative capacity to implement this 
preference.

III. Mobility-Related Services

    The Appropriations Acts provide funding for mobility-related 
services to be implemented under the demonstration. PHAs that 
participate in the demonstration will be required to implement 
comprehensive mobility-related services (CMRS) and selected mobility-
related services (SMRS). HUD will test whether providing mobility-
related services to families with children results in moves to 
opportunity areas compared to those families that are not offered these 
services. HUD will use a randomized controlled experiment--the gold 
standard for measuring causal impacts--to evaluate the effectiveness of 
the demonstration. PHAs participating in the demonstration will propose 
administrative policies to be adopted. PHAs will also have the option 
of developing a regional project-based voucher strategy as part of 
their participation in the demonstration.

Comprehensive Mobility-Related Services

    This section describes the components of CMRS likely to be required 
for implementation at participating PHAs. In order to

[[Page 42896]]

effectively implement a randomized controlled experiment, all 
participating PHA sites will be required to implement substantially the 
same CMRS.
    In their applications, PHAs will describe how they intend to 
implement these services. PHAs also will have the opportunity in their 
applications to identify whether there are mobility-related services 
they think may not be successful in their region. After selection, HUD 
will work with PHAs to finalize the standard set of CMRS to be offered 
at all demonstration sites.
    HUD recognizes that local experiences and circumstances are also 
important for crafting an effective set of CMRS. PHAs may be allowed to 
provide additional services beyond the CMRS if the services do not 
impact the research design.\19\ PHAs will identify in their proposals 
other services they may want to offer as part of the demonstration.
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    \19\ For example, a PHA may want to launch an informal peer-to-
peer network of families that have moved to opportunity areas. This 
likely would not be in the CMRS but should not impact the research 
design and likely could be implemented by the PHA.
---------------------------------------------------------------------------

    Although HUD hopes to learn what strategies help families access 
opportunity areas and will closely monitor the number of moves to 
opportunity areas, participation in mobility-related services will be 
entirely voluntary. Families may end participation in mobility-related 
services at any time and it will not affect their status as an 
applicant or participant in the HCV program.
    Based on available research, HUD has identified CMRS that are 
likely to be successful in helping families move to opportunity areas. 
These include a range of services, such as pre-move support and housing 
search assistance, landlord outreach and support, family financial 
assistance, landlord financial incentives, post-move, and subsequent-
move support, which are described in detail below. PHAs will have the 
flexibility to work with individual families to customize services, 
provided every family is offered all of the available services.
Pre-Move Services
     Creating customized plans to address individual family 
barriers to renting a unit in an opportunity area, such as negative 
credit, lack of credit, or negative rental or utility history.
     Providing information on schools, the opportunity to tour 
and meet with school staff, educators, and any necessary educational 
support services, neighborhood amenities, and the short-term and long-
term benefits of moving to an opportunity area.
Housing Search Assistance
     Helping an individual family identify and tour available 
units in opportunity areas, including physically accessible units and 
features for family members with disabilities.
     Assisting with the completion of rental applications and 
PHA forms.
     Expediting the PHA leasing process.
Family Financial Assistance
     Creating customized assistance \20\ to help remove certain 
cost barriers to initial lease-up in an opportunity area by providing 
funds for application fees, move-in fees, and security deposits.
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    \20\ After selection, HUD and PHAs will work collaboratively 
together to establish reasonable limits on family financial 
assistance to be provided with mobility-related service funding.
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Landlord Recruitment
     Conducting concerted outreach for increased landlord 
participation in opportunity areas.
     Providing enhanced customer service.
     Conducting expedited inspections.
     Providing financial incentives with mobility-related 
service funding such as damage mitigation funds, signing bonuses, or 
vacancy payments which may help encourage more landlords in opportunity 
areas to participate.\21\
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    \21\ After selection, HUD and PHAs will work collaboratively 
together to establish reasonable limits on landlord incentives to be 
provided with mobility-related service funding.
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Post-Move Services
     Helping families locate neighborhood resources and 
amenities and navigate enrolling their children in the local school.
     Conducting regular check-ins, services, and supporting the 
adjustment to a new neighborhood.
     Providing subsequent move counseling for families who may 
want to move again after their initial opportunity area move. PHAs will 
offer some of the same services they provided initially as part of 
second-move counseling.

Selected Mobility-Related Services (SMRS)

    Based on existing research, it is likely that the intensive nature 
of supports offered through CMRS will result in an increased number of 
moves to opportunity areas for participating families. However, based 
on available data, it is unclear whether individual elements or a 
streamlined version of CMRS would result in an increased number of 
moves to opportunity areas. Although it is likely CMRS will result in 
successful moves to opportunity areas, there may be more cost-effective 
approaches to expanding housing opportunities for families with 
children. As such, HUD will test whether a selected subset of mobility-
related services is effective at helping families move to and remain in 
opportunity areas.
    Participating PHA sites will also implement SMRS while they 
continue to offer CMRS. The SMRS implemented by each participating PHA 
will likely be a subset of the services offered through CMRS. HUD will 
not finalize the SMRS until at least one year of CMRS has been 
implemented. HUD will work closely with PHAs to identify what 
components of CMRS seem most promising to test as SMRS. However, PHAs 
will identify in their applications which subset of CMRS they would 
most like to implement as SMRS.
    In order to effectively implement a randomized controlled trial, at 
least two PHA demonstration sites will be required to implement 
substantially the same SMRS. HUD expects to test between two and four 
different SMRS interventions. Participating PHAs will be required to 
offer the SMRS and administrative policies to all participating 
families in the treatment group, although it is expected not all 
families will choose to take up every service offered.

Administrative Policies

    In order to conduct effective research, HUD and PHAs must balance 
the administrative policy differences inherent in the HCV program and 
local contexts with the research need to maintain some level of 
similarity among certain administrative policies across sites. In their 
applications, PHAs will describe administrative policies they want to 
implement through this demonstration, or already have implemented, that 
promote housing mobility.
    HUD has identified at least one policy area where standardization 
will be required to ensure it is possible to evaluate the effectiveness 
of the demonstration. HUD will require that PHAs participating in the 
demonstration offer high enough payment standards in opportunity areas 
to ensure that families have access to rental units in opportunity 
areas. HUD also will require that PHAs participating in the 
demonstration offer the same payment standards to families in the 
treatment and control group. Please see Section V Application Process, 
for further information on payment standards.
    HUD will ask for existing or proposed policies such as voucher 
search times, portability policies, and other similar

[[Page 42897]]

policies that promote housing choices and mobility. After selection, 
HUD will work collaboratively with participating PHA to ensure these 
and other administrative policies are adequate to help families access 
opportunity areas and to ensure a level of consistency across 
participating sites.
    PHAs must agree to update their PHA Plans and Administrative Plans 
to reflect the required HCV waiting list preference and any finalized 
policy changes, as applicable.

Regional Project-Based Voucher Plan

    Due to the limited number of MDVs made available under the 
demonstration, and the need for all of those MDVs to be part of the 
randomized controlled trial research evaluation, PHAs may not project-
base any awarded MDVs. Families that receive mobility-related services 
under the demonstration may, however, move to project-based voucher 
(PBV) units. PHAs are encouraged to inform families of available PBV 
units in their service areas.
    Although MDVs cannot be project-based, PHAs may use up to two 
percent of their mobility-related services funding to develop a 
regional project-based voucher plan. PHAs will develop the plan 
throughout the first three years of the demonstration. The plan, which 
will be submitted to HUD at the beginning of the fourth year of the 
demonstration, must include, at a minimum, (1) an analysis of PBV units 
that are large enough for families with children and are currently in 
opportunity areas in the region and (2) a strategy for increasing the 
number of those types of PBV units throughout the region. While 
drafting their plans, PHAs may want to analyze barriers to increasing 
the number of family PBV units in opportunity areas and how to overcome 
those barriers. PHAs will also want to develop a plan, potentially 
including strategies for providing mobility-related services to 
families interested in moving to PBV units.

Memorandum of Understanding and Performance Standards Requirements

    After selection, HUD will work collaboratively with all 
participating PHAs to finalize the program and research design that 
will be implemented at each participating PHA. The program and research 
design will include the final set of mobility-related services to be 
implemented as part of the CMRS, administrative polices to promote 
expanded housing opportunities, a program budget, and an enrollment 
plan. The program and research design will also include information on 
how SMRS treatment likely will be developed and implemented. HUD 
anticipates that these will be decided within six months of selection.
    After the program and research design is finalized, HUD will draft 
a memorandum of understanding (MOU) that outlines roles, 
responsibilities, the program and research design, services to be 
offered, and descriptions of administrative policies, among other 
things. HUD also will draft a performance standards agreement that 
outlines programmatic goals, recapture and reallocation terms, a 
budget, and a payment schedule for mobility-related services.
    PHAs will have up to 60 days to review the terms of the MOU and 
performance standards agreement. Although HUD anticipates that all 
selected PHAs will want to continue forward with implementation of the 
demonstration, PHAs will have the option to decline execution of either 
prior to implementation of the demonstration. However, after the MOU 
and performance standards agreement have been executed, PHAs will not 
be able to exit the demonstration without HUD's prior authorization.
    It is important for PHAs with existing housing mobility programs to 
understand that it is possible the final CMRS might not reflect their 
existing program, yet they will be required to implement services as 
required by the demonstration.

IV. Award Description

    Grant funding of up to $50,000,000 is available through this 
notice. All awards are subject to statutory constraints and the 
applicable funding restrictions contained in this notice.
    Of the total $50,000,000 made available under this notice, up to 
$10,000,000 of housing assistance payments (HAP) funding will be 
available for new increments of Housing Choice Voucher mobility 
demonstration vouchers (MDVs). HAP funding for MDVs will be renewed 
annually in accordance with HUD's renewal formula guidance.
    The remainder of the funding will be available for mobility-related 
services. These funds will be released to the PHA on an agreed upon 
budget and schedule that aligns with HUD's cash management procedures.
    HUD expects to make approximately 5-10 awards for MDVs and 
mobility-related services together. HUD expects the minimum award 
amount, including both MDVs and mobility-related services funding, 
likely to be no less than $4,000,000 and the maximum award amount 
likely to be no more than $10,000,000.
    For any public housing agency administering voucher assistance 
under the demonstration that determines that it no longer has an 
identified need for such assistance upon turnover, such agency shall 
notify HUD, and HUD shall recapture such assistance from the agency and 
reallocate it to any other public housing agency or agencies based on 
need for voucher assistance in connection with the demonstration.
    HUD expects to announce awards under this demonstration in December 
2020.

Eligible Uses of Funds

Housing Choice Voucher Mobility Demonstration Vouchers HAP and 
Administrative Fees
    Funds awarded for HAP and administrative fees must be used in 
accordance with the Appropriations Acts and other applicable guidance. 
For Moving to Work (MTW) PHAs awarded MDV HAP funds and administrative 
fees under this demonstration, these funds are not eligible for 
fungibility. MDVs may be administered in accordance with activities in 
the approved MTW Plan or Supplement unless MTW provisions are 
inconsistent with the Appropriations Acts or requirements of this 
notice. In the event of a conflict between approved MTW activities and 
flexibilities and the Appropriations Acts or notice language, the 
Appropriations Acts and notice govern.
Mobility-Related Services Funding
    Funds awarded must be used to provide eligible mobility-related 
services for families with children. Mobility-related services funding 
is not eligible for fungibility under the MTW demonstration. PHAs may 
use up to five percent of their allocation of mobility-related services 
funding for start-up costs such as hiring and training new staff or 
adopting new technology. As noted in Section III Mobility Related 
Services ``Regional Project-based Voucher Plan,'' PHAs may use up to 
two percent of their allocation of mobility-related services funding to 
develop a regional project-based voucher plan.
PHA Administrative Fees
    PHAs participating in the demonstration may use administrative 
fees, their administrative fee reserves, and funding from private 
entities to provide mobility-related services in connection with the 
demonstration program, including services such as counseling, 
portability coordination,

[[Page 42898]]

landlord outreach, security deposits, and administrative activities 
associated with establishing and operating regional mobility programs. 
PHAs are cautioned that CMRS and SMRS must be offered and to consider 
whether the terms of any private funding agreements would interfere 
with their ability to meet demonstration requirements when potentially 
soliciting or receiving funding from private entities.
PHA HAP Funds
    PHAs participating in the demonstration may use housing assistance 
payments (HAP) funds under section 8(o) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(o)) for security deposits \22\ if 
necessary, to enable families participating in the treatment group to 
lease units with vouchers in designated opportunity areas. HUD 
anticipates that PHAs generally will use mobility-related service 
funding for security deposits for the demonstration.
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    \22\ Authorization for PHAs participating in the demonstration 
to use non-MDV HAP for security deposits was included in the 2019 
Appropriations Act. This flexibility is for PHAs participating in 
the demonstration only.
---------------------------------------------------------------------------

Project-Based Vouchers and HCV Homeownership Program
    MDVs, and regular turnover vouchers made available by the PHA 
specifically for the demonstration, may not be used as project-based 
vouchers (PBVs) or as HCV homeownership program vouchers, due to design 
constrains of the research evaluation. The research evaluation will 
measure the mobility-related services families receive and not efforts 
made by PHAs to secure physical property in opportunity areas. 
Evaluating the means by which a PHA can secure specific units in 
opportunity areas requires a different set of research protocols.
    Families participating in the demonstration may move to a PBV unit 
or purchase a home through the HCV homeownership program. Any MDV 
voucher holder that chooses to move to a project-based unit or purchase 
a home through the HCV homeownership program must be offered another 
voucher from the PHA in accordance with the PHA's policies. Given the 
limited number of MDVs and regular turnover vouchers required to be 
made available (i.e. about 1,500) HUD anticipates this will not be a 
significant challenge for PHAs over the course of the demonstration.
Recapture and Reallocation of Funds
    Funds awarded under this notice may be recaptured and reallocated 
and units awarded may be reduced if the PHA does not comply with the 
requirements of the notice, the performance standards agreement, or the 
MOU that will be executed after award. If HUD finds a PHA in non-
compliance of the terms of the notice, performance standards agreement, 
or the MOU, HUD may recapture any unspent mobility-related service or 
voucher funds. HUD may also reallocate any mobility-related service 
dollars or awarded vouchers to the next highest scoring applicant(s) 
that applied for the demonstration under this notice. For example, 
should a selected PHA not make efforts to enroll families to 
participate in the demonstration, HUD would have the authority to 
recapture mobility-related service funding from the PHA.

Beneficiary Eligibility

    Both the vouchers and the services made available under the 
demonstration shall be for families with children. This means that a 
family without children may not participate in the demonstration, 
receive an MDV, or receive mobility-related services under the 
demonstration.

V. Application Process

General Eligibility Criteria

    Only PHAs that already administer HCVs are eligible to apply. Non-
profits that administer Mainstream voucher assistance are not eligible 
to participate in the demonstration. PHAs that fail to meet any of the 
following eligibility requirements will be deemed ineligible. 
Applications from ineligible PHAs will not be evaluated.

Statutory Categories of Eligibility

    Only certain PHAs, or groups of PHAs, are eligible to participate 
in the demonstration. To be eligible to participate in the 
demonstration, a PHA must meet one of four eligibility categories. 
Further definitions of the eligibility categories and how PHAs 
demonstrate they fall into an eligibility category are included in 
Section VII Application Format.
    Category A PHAs (PHA Partnerships) are agencies that, together, 
serve areas with high concentrations of voucher holders in poor, low-
opportunity neighborhoods and have an adequate number of moderately 
priced rental units in high-opportunity areas. For the purposes of the 
notice, ``high-opportunity'' and ``opportunity area'' have the same 
meaning.\23\
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    \23\ PHAs may meet these criteria through one of two ways, 
either: (1) PHAs that are located in Mandatory Small Area Fair 
Market Rent areas; or (2) PHAs that meet the criteria using data 
provided by HUD, as described later in the Notice (see Section VII 
Application Format, Funding Application Form HUD-52515, Part K).
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    Category B PHAs (Consortia with High-Performing FSS Program) are in 
planned consortia or partial consortia of PHAs that include at least 
one agency with a high-performing FSS program.\24\
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    \24\ PHAs may meet these criteria using definitions established 
by HUD, as described later in the Notice (see Section VII 
Application Format, Funding Application Form HUD-52515, Part K).
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    Category C PHAs (Consortia with Small PHA) are in planned consortia 
or partial consortia of PHAs that serve jurisdictions within a single 
region, include one or more small agencies, and will consolidate 
mobility-focused operations.\25\
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    \25\ PHAs may meet these criteria using definitions established 
by HUD, as described later in the Notice (see Section VII 
Application Format, Funding Application Form HUD-52515, Part K).
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    A Category D PHA (Single Agency) is a single agency that serves 
areas with high concentrations of voucher holders in poor, low-
opportunity neighborhoods and has an adequate number of moderately 
priced rental units in high-opportunity areas. In defining this 
category, HUD is using its statutory authority, included in Section 
235(b)(1)(D) in the 2019 Appropriations Act to establish other 
categories of PHAs that are eligible to participate in the 
demonstration.\26\
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    \26\ A PHA may meet these criteria through one of two ways, 
either: (1) PHAs that are located in Mandatory Small Area Fair 
Market Rent areas; or (2) PHAs that meet the criteria using data 
provided by HUD, as described later in the Notice (see Section VII 
Application Format, Funding Application Form HUD-52515, Part K).
---------------------------------------------------------------------------

Other Eligibility Requirements

    Required preference--The Appropriations Acts allow for the 
``establishment and priority and preferences for participating 
families, including a preference for families with young children, as 
such term is defined by the Secretary, based on regional housing needs 
and priorities.'' As such, HUD is requiring PHAs that participate in 
the demonstration adopt a preference as described in the Section II 
Research Evaluation, ``Required HCV Waiting List Preference.''
    This preference is for the purposes of new admission vouchers under 
this demonstration only. It does not apply to mobility-related services 
for existing voucher holders.
    Payment standards--PHAs must agree to adopt adequate payment 
standards in opportunity areas. PHAs must agree that payment standards 
will be finalized in coordination with HUD after selection. PHAs must 
agree that the same payment standards will be offered to families in 
the treatment and control groups.

[[Page 42899]]

    Program evaluation--As a condition of receipt of financial 
assistance under this notice, all participating PHAs will be required 
to cooperate with HUD, and any contractors affiliated with HUD in 
implementing and evaluating this demonstration program.
    Civil rights--Outstanding civil rights matters must be addressed to 
HUD's satisfaction prior to grant award, provided that all applicable 
legal processes have been satisfied.
    Program management findings--The PHA must not have any major 
unresolved program management findings, including but not limited to, 
from an inspector general's audit, HUD management review, an 
independent public accountant audit for the PHA's HCV program, or other 
significant compliance problems that were not resolved or in the 
process of being resolved prior to the notice's application deadline. 
Major program management findings, significant program compliance 
problems, or being in a funding shortfall, are examples of situations 
that would cast doubt on the capacity of the PHA to effectively 
administer any new HCV funding in accordance with applicable HUD 
regulatory or statutory requirements.
    Timely submission of application--Applications submitted after the 
deadline stated within this notice that do not meet the requirements of 
the grace period policy (described in Section IX: Application 
Deadlines) will be marked late. Late applications are ineligible and 
will not be evaluated.
    Other circumstances or requirements affecting PHA eligibility--
Outstanding delinquent Federal debts; debarments and/or suspensions; 
pre-selection review of performance; sufficiency of financial 
management system; false statements; mandatory disclosure requirements; 
prohibition against lobbying activities; equal participation of faith-
based organizations in HUD programs and activities; and program 
specific requirements affecting eligibility. Detailed information on 
each requirement is posted on HUD's funding opportunities page: https://www.hud.gov/program_offices/spm/gmomgmt/grantsinfo/fundingopps.
    To be eligible, PHAs must agree to other requirements. By 
submitting an application, PHAs agree to the following:
    Provide effective communication--All notices and communications 
must be provided in a manner that is effective for persons with 
hearing, visual, and other communication-related disabilities 
consistent with Section 504 of the Rehabilitation Act and HUD's Section 
504 regulation, and Titles II or III of the Americans with Disabilities 
Act (ADA) and implementing regulations. Recipients must provide 
appropriate auxiliary aids and services necessary to ensure effective 
communication, which includes ensuring that information is provided in 
appropriate accessible formats as needed, e.g., Braille, audio, large 
type, assistive listening devices, and sign language interpreters, 
accessible websites and other electronic communications (See 24 CFR 
8.6; 28 CFR 35.160, 28 CFR 36.303). PHAs also must take reasonable 
steps to ensure meaningful access to their programs and activities to 
limited English proficient (LEP) individuals. As an aid to recipients, 
HUD published Final Guidance to Federal Financial Assistance 
Recipients: Title VI Prohibition Against National Origin Discrimination 
Affecting Limited English Proficient Persons (LEP Guidance) in the 
Federal Register on January 22, 2007 (72 FR 2732).
    Comply with HCV program requirements--HCVs awarded under this 
notice will be subject to all program requirements, including those at 
24 CFR part 982, except for requirements that are specifically waived, 
which are described in Section VI Waivers and Alternative Requirements 
for the Demonstration. PHAs must comply with alternative requirements.

VI. Waivers and Alternative Requirements for the Demonstration

    Section 235(e)(1) of division G of the 2019 Appropriations Act 
provides the Secretary with the authority to waive or specify 
alternative requirements for four provisions of Section 8 of the 1937 
Act. These waivers or alternative requirements are exceptions to the 
normal HCV and PBV requirements, and only apply to the demonstration. 
Participating PHAs may also request programmatic regulatory waivers, as 
described in Section VII Application Format. PHAs will provide 
programmatic regulatory waiver requests to HUD in their Regional 
Housing Mobility Plan.
    Consistent with the authority in section 235(e)(1), HUD has decided 
to exercise the discretionary statutory waiver authority for two of the 
four provisions in the 1937 Act, as discussed immediately below. HUD 
has also found good cause to use discretionary regulatory waiver 
authority provided for in 24 CFR 5.110 for one regulatory waiver needed 
to implement the demonstration.

Lease Term and Mobility Requirements

    Section 235(e)(1)(A) of the 2019 Appropriations Act authorizes the 
Secretary to waive or specify alternative requirements for Sections 
8(o)(7)(A) and 8(o)(13)(E)(i) of the 1937 Act and relevant regulatory 
provisions.
    Section 8(o)(7)(A) provides that ``the lease between the tenant and 
the owner shall be for a term of not less than one year, except that 
the public housing agency may approve a shorter term for an initial 
lease between the tenant and the dwelling unit owner if the public 
housing agency determines that such shorter term would improve housing 
opportunities for the tenant and if such shorter term is considered to 
be a prevailing local market practice.'' HUD is waiving this statutory 
provision because allowing shorter initial lease terms in certain 
rental markets may help expand the pool of available landlords and 
rental units in opportunity areas. HUD is also waiving the 
corresponding program regulations on the ``term of assisted tenancy'' 
at 24 CFR 982.309(a)(1) and (2). Using this waiver, PHAs have the 
discretion to approve shorter initial lease terms if they believe 
shorter terms will expand the pool of available landlords and rental 
units in opportunity areas.
    Section 8(o)(13)(E)(i) states that for the project-based voucher 
program, ``each low-income family occupying a dwelling unit assisted 
under the contract may move from the housing at any time after the 
family has occupied the dwelling unit for 12 months.'' PHAs must offer 
each such family the opportunity for continued tenant-based rental 
assistance, consistent with the requirements in Section 8(o)(13)(E)(ii) 
and 24 CFR 983.261. HUD is not waiving Section 8(o)(13)(E)(i) because 
it believes the 12-month standard is reasonable and is fully compatible 
with the demonstration.

Consistency With PHA Plan

    Section 235(e)(1)(B) of the 2019 Appropriations Act authorizes the 
Secretary to waive or specify alternative requirements for Section 
8(o)(13)(C)(i) of the 1937 Act.
    Section 8(o)(13)(C)(i) states that, for the project-based voucher 
program, ``a public housing agency may approve a housing assistance 
payment contract only if the contract is consistent with the public 
housing agency plan for the agency . . .'' Although vouchers made 
available under this notice cannot be project-based, as discussed 
earlier in Section II Mobility-related Services, PHAs may use up to two 
percent of their mobility-related services funding to

[[Page 42900]]

develop a regional project-based voucher plan. The plan must include, 
at a minimum (1) an analysis of PBV units large enough for families 
with children located in opportunity areas in the region, and (2) a 
strategy for increasing the number of those types of PBV units in 
opportunity areas throughout the region.
    HUD is waiving this statutory provision to allow PHAs the 
flexibility to develop a regional project-based voucher plan that is 
inconsistent with the current PHA plan.

Portability Waiver

    Section 235(e)(1)(C) of the 2019 Appropriations Act authorizes the 
Secretary to waive or specify alternative requirements for Section 
8(r)(2) of the 1937 Act which provides that, with respect to 
portability, ``the PHA having authority with respect to the dwelling 
unit to which a family moves . . . shall have the responsibility of 
carrying out the [statutory portability] provisions with respect to the 
family.''
    The geographical areas in which PHAs may administer vouchers is 
largely governed by state law. HUD is not waiving Section 8(r)(2). The 
agency believes that there must be compelling reasons for waiving this 
statutory provision, given that a waiver could result in substantial 
overriding of state laws in a fundamental area like PHA jurisdiction. 
Accordingly, HUD does not believe such compelling reasons exist with 
respect to the demonstration. Rather than waive this statutory 
provision, HUD is requiring PHAs applying for the demonstration provide 
information on how they plan to streamline portability policies and 
procedures across their region.\27\ HUD believes PHAs can adequately 
streamline portability policies and procedures without this statutory 
waiver.
---------------------------------------------------------------------------

    \27\ See Section VII Application Format, Funding Application HUD 
Form-52515, Part G, Regional Housing Mobility Plan.
---------------------------------------------------------------------------

Section Eight Management Assessment Program Waiver and Alternative 
Requirement

    Under the HCV program, a PHA may receive deconcentration bonus 
points under the Section Eight Management Assessment Program (SEMAP) if 
the PHA submits deconcentration data in a HUD-prescribed format, and 
HUD verifies that the PHA met the requirements for the bonus. For any 
PHA participating in the demonstration, HUD is waiving 24 CFR 985.3(h), 
which governs the deconcentration bonus points. Instead, HUD is 
providing that such a PHA shall receive deconcentration bonus points 
for the first year after full implementation of the demonstration and 
for the rest of the years the PHA participates in the demonstration. 
This provision is not applicable to MTW agencies that do not 
participate in SEMAP.

Consortia Waivers and Alternative Requirements

    Section 235(e)(1) of division G of the 2019 Appropriations Act 
requires HUD to provide two sets of alternative requirements related to 
consortia for the purposes of the demonstration. The first set is to 
allow a consortium that has a single HCV funding contract and the 
second set is to allow PHAs to enter into a partial consortium to 
operate all or portions of the Regional Housing Mobility Plan.
    In the HCV program, the formation of consortia is governed by the 
1937 Act, 42 U.S.C. 1437k and 24 CFR part 943, subpart B. Generally, 
the statute and regulations provide that two or more PHAs may enter 
into a consortium agreement and that each PHA will maintain its 
identity, including its board and PHA code, and its Annual 
Contributions Contract (ACC) with HUD.
Alternative Requirements for a Single HCV Funding Contract Consortium
    In July 2014, HUD issued a proposed rule, ``Streamlining 
Requirements Applicable to Formation of Consortia by Public Housing 
Agencies'' in the Federal Register.\28\ Although the rule has yet to be 
finalized, for the purposes of PHAs applying as a single HCV funding 
contract consortium for this demonstration, HUD will waive program 
regulations at 24 CFR part 943, subpart B, and provide for the use of 
alternative requirements required by section 235(e)(2) based on the 
standards in the proposed rule.\29\ These alternative requirements are 
provided in Attachment B of this notice. The proposed rule does not 
provide for the participation of MTW agencies in a single HCV funding 
contract consortium and therefore the alternative requirements do not 
either.
---------------------------------------------------------------------------

    \28\ 79 FR 40019, available at: https://www.govinfo.gov/content/pkg/FR-2014-07-11/pdf/2014-16151.pdf.
    \29\ The proposed rule refers to a single HCV funding contract 
consortium as a single-ACC consortium.
---------------------------------------------------------------------------

    PHAs interested in forming a single HCV funding contract consortium 
will submit a proposal for implementation as part of their application. 
A description of how PHAs submit their applications for a single HCV 
funding contract consortium is in Section VII Application Format, Part 
K.
Alternative Requirements for a Partial Consortium
    HUD has considered numerous options for providing alternative 
requirements for forming partial consortia. After significant analysis, 
HUD has not been able to develop viable alternative requirements for 
partial consortia within the constraints of the existing statutory 
framework at 42 U.S.C. 1437k. There are, in HUD's view, statutory 
provisions that are not compatible with the establishment of partial 
consortia. For example, the statute requires that all planning and 
reporting requirements must be consolidated for PHAs participating in a 
consortium. It is unclear how PHAs participating in a partial 
consortium would be able to consolidate all of their planning and 
reporting requirements. In addition, the Single Audit Act requires 
audits of non-Federal entities that expend more than $750,000 from all 
federal sources. This means that each PHA member in a partial 
consortium that receives more than $750,000 in Federal funds from all 
sources would require an individual audit and be unable to consolidate 
all of their planning and reporting as required by 42 U.S.C. 1437k.
    Although HUD was unable to determine a set of alternative 
requirements for partial consortia within the statutory requirements, 
it may be possible that PHAs interested in applying for the 
demonstration have an innovative approach to resolving the challenges 
resulting from the statutory constraints. PHAs interested in 
participating in partial consortia may submit a proposal for 
implementing a partial consortium as part of their application. HUD 
will evaluate each proposal on a case-by-case basis to ensure it meets 
the statutory requirements and consider any potential regulatory 
waivers that are statutorily allowable. A description of how PHAs 
submit their applications for partial consortia is provided in Section 
VII Application Format, Part K.

Effective Dates

    As required by section 235(e)(3) of the 2019 Appropriations Act, 
the waivers and alternative requirements for this demonstration that 
are listed above will not take effect before the expiration of the 10-
day period beginning upon publication of this Notice.

VII. Application Format

    There are two types of applicants for the demonstration: (1) PHAs 
that apply

[[Page 42901]]

together under Category A, PHA Partnerships; Category B, Consortia with 
High-Performing FSS Program; or Category C, Consortia with Small PHA, 
and (2) a single PHA that applies under Category D, Single Agency.
    For the purposes of this section, HUD describes PHAs that apply 
together--Categories A, B, and C listed above--as joint PHA applicants. 
Also, for the purposes of this section, HUD describes a PHA that 
applies alone, Category D, as a single PHA applicant. Joint PHA 
applicants will submit a single application, which will consist of 
sections prepared jointly and sections prepared on an individual PHA 
basis, all of which will be aggregated and submitted together.
    Joint PHA and single PHA applicants must submit the application for 
the demonstration in the format required by HUD by the due date.
    The application includes four required forms. These forms, and 
where they can be downloaded, are listed in Table 4.
    Where additional pages are needed to respond to the application, 
PHAs must comply with the following formatting requirements:
     Use 8\1/2\ x 11-inch paper; all margins should be 
approximately one inch;
     Use at least 10-point font;
     Each page must be numbered;
     Adhere to the page limit requirements of each applicable 
section. There is no minimum length required for narratives;
     Any pages marked as sub-pages (e.g., with numbers and 
letters such as 25A, 25B, 25C), will be treated as separate pages;
     If a section is not applicable, indicate ``N/A'';
     No more than one page of text may be placed on one sheet 
of paper (i.e., you may not shrink pages to get two or more on a page); 
and
     Shrunken pages, or pages where a minimized/reduced font 
are used, will be counted as multiple pages.

                                             Table 4--Required Forms
----------------------------------------------------------------------------------------------------------------
               Form                 Submission requirements          Description              Link to form
----------------------------------------------------------------------------------------------------------------
Funding Application--Form HUD-     For joint PHA              This form will largely    https://www.hud.gov/
 52515.                             applications, Sections A-  be completed through      sites/dfiles/PIH/
                                    C and F are required for   additional attachments.   documents/HUD-
                                    each individual PHA.                                 52515_.pdf.
                                    Sections D, E and G-L
                                    should be completed
                                    jointly and only one
                                    version should be
                                    submitted.
                                   For single PHA             HUD recommends
                                    applicants, Sections A-L   submitting additional
                                    should be completed and    documentation for Parts
                                    submitted.                 D-G and K in a document
                                                               named
                                                               ``[PHAcode]_attachment
                                                               1''; Additional
                                                               documentation for Part
                                                               J in a PDF document
                                                               named
                                                               ``[PHAcode]_attachment
                                                               2'', and additional
                                                               documentation for Part
                                                               L in
                                                               ``[PHAcode]_attachment
                                                               3.''
                                   Please note that Sections
                                    H and I will be blank
                                    for all applicants.
                                   A sample 52515 and
                                    supporting documentation
                                    attachments may be found
                                    at https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/mobilitydemo mobilitydemo.
Application for Federal            For joint PHA              PHAs are encouraged to    https://
 Assistance--Form SF-424 and SF-    applications, all          use additional pages to   www.hudexchange.info/
 424B.                              individual PHAs            complete the Form SF-     resource/306/hud-form-
                                    requesting MDVs that are   424.                      sf424/.
                                    participating in the
                                    joint application must
                                    submit this form. The
                                    lead PHA should include
                                    the mobility-related
                                    service funding in
                                    question 18.
                                   Single PHA applicants      HUD may contact a PHA to
                                    must submit this form.     clarify items on this
                                                               form and items will be
                                                               treated as a curable
                                                               deficiency.
Applicant/Recipient/Disclosure/    For joint PHA              This is the HUD           https://
 Update Report--Form HUD-2880.      applications, all          Applicant Recipient       files.hudexchange.info/
                                    individual PHAs            Disclosure form. HUD      resources/documents/HUD-
                                    participating in a joint   may contact an            Form-2880-Applicant-
                                    application must submit    applicant to clarify      Recipient-
                                    this form.                 items on this form and    Disclosure.pdf.
                                                               items will be treated
                                                               as a curable deficiency.
                                   Single PHA applicants
                                    must submit this form.
Disclosure of lobbying             For joint PHA              This form is only         https://
 activities, if applicable--Form    applications, all          applicable if your        www.hudexchange.info/
 HUD SF-LLL.                        individual PHAs            agency has used or        resource/308/hud-form-
                                    participating in the       intends to use non-       sflll/.
                                    joint application must     Federal funds for
                                    submit this form.          lobbying activities.
                                                               HUD may contact an
                                                               applicant to clarify
                                                               items on this form and
                                                               items will be treated
                                                               as a curable deficiency.
                                   Single PHA applicants
                                    must submit this form.
----------------------------------------------------------------------------------------------------------------


[[Page 42902]]

Funding Application Form HUD-52515

    The Funding Application Form HUD-52515, which is comprised of Parts 
A-L, is where most of the information required to be submitted to apply 
for the demonstration is provided. PHAs may provide additional 
attachments as part of the Funding Application Form HUD-52515. For 
Parts D-G of Funding Application Form HUD-52515, additional pages 
submitted by the joint or single PHA applicants may not exceed 43 pages 
total. HUD will review only the first 43 pages for Parts D-G Funding 
Application Form HUD-52515, and any responses after 43 pages will not 
be considered for scoring. Parts K, J and L have no page limit. (Parts 
H and I will be blank for all applicants.)
    HUD recommends submitting additional documentation for Parts D-G 
and K in a document named ``[PHAcode]_attachment 1''; additional 
documentation for Part J in a PDF document named ``[PHAcode]_attachment 
2''; and additional documentation for Part L in a document named 
``[PHAcode]_attachment 3.'' A sample Funding Application Form HUD-52515 
and sample supporting attachments may be found at: https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/mobilitydemo.
Parts A-C
    In Parts A-C, each PHA participating in a joint application, or the 
single PHA applicant, must provide their name and mailing address, PHA 
code, and the number of MDVs requested. For example, if five PHAs are 
part of a joint application, HUD will receive five copies of Funding 
Application Form HUD-52515 with Parts A-C completed by each individual 
PHA.
Part D Geographic Area/Jurisdiction (Describe the Area in Which 
Assisted May Live)
    In this part, the joint or single PHA applicant must describe the 
geographic area in which the PHA, or combination of PHAs, may 
administer vouchers. Describe how housing agency jurisdictions are 
created under state law and any implications that may have for 
participation in the demonstration, particularly as it relates to 
shared jurisdictions for portability. If needed, one additional page 
may be added to describe the jurisdiction. Only one Part D will be 
submitted. For joint PHA applicants it will be submitted as part of the 
lead PHA's Funding Application Form HUD-52515.
Part E Capacity of the Organization
    In this part, the joint or single PHA applicant must submit a 
narrative description of the capacity and prior experience of the PHAs 
or PHA. Describe the following:
     Experience managing high-performing voucher programs.
    [cir] PHAs must describe how they effectively manage their program 
to achieve a high utilization rate, which should include information on 
how they analyze the waiting list and monitor the success rate to meet 
both funds and unit utilization goals each year.
    [cir] PHAs must describe how they are providing timely and 
consistent inspections, providing customer service, adopting technology 
such as landlord or participant portals, and using mapping software.
     Prior experiences working together with other PHAs on a 
regional basis through initiatives such as portability, consolidated 
administrative functions, HCV process or policy alignment, or other 
collaborations.
     Experience implementing policies and/or programs that 
promote housing choice for families with children, particularly 
expanded choices in opportunity areas and any experience implementing a 
housing mobility program or other mobility-related or similar services, 
including, but not limited to:
    [cir] Experience adopting and implementing policies to promote 
moves to opportunity areas, including streamlining portability 
procedures, increasing voucher search times, providing adequate payment 
standards in opportunity areas, and housing locator services;
    [cir] Experience conducting outreach to families in high-poverty 
neighborhoods;
    [cir] Recruiting and retaining landlords, particularly landlords in 
opportunity areas;
    [cir] Helping voucher families meet landlord screening factors, 
including but not limited to credit repairs, financial coaching, or 
security deposit assistance;
    [cir] Implementing and administering Federal, State, local or non-
profit grants, programs or activities that demonstrate PHA capacity, 
which may include, but are not limited to: Special purpose vouchers 
(e.g. HUD-Veterans Affairs Supportive Housing (HUD-VASH), Family 
Unification, Mainstream vouchers, etc.), the Rental Assistance 
Demonstration, Low-Income Housing Tax Credit (LIHTC), Community 
Development Block Grant (CDBG), HOPE VI or Choice Neighborhoods grants; 
and
    [cir] Participating in research studies, including a randomized 
controlled trial, research evaluation or demonstrations, such as 
quantitative or qualitative research, or other experience with data 
analysis or mapping.
     Data and information on the PHAs' program size to support 
the number of proposed enrollees for the research evaluation. PHAs will 
propose the number of enrollees in Part F Need/Extent of the Problem. 
In this Part E, PHAs must submit the program data and information to 
support the number of enrollees proposed in Part F. PHAs also may 
submit a narrative on any of these data elements to describe program 
performance, which may include discussion of relevant program 
operations and performance experience. Although only one Part E will be 
submitted for joint PHA applicants, each PHA must provide the following 
information at an individual PHA-level. The lead PHA will submit all 
PHA applicants' information in their Funding Application Form HUD-
52515. To support the number of proposed enrollees described in Part F 
Need/Extent of the Problem, applicants will likely submit data on the 
following, but are not limited to these elements only:
    [cir] Number of families with children on waiting list;
    [cir] Number of recertifications completed for families with 
children between January 1, 2010 and December 31, 2019;
    [cir] Number of families with children currently leased as of 
December 31, 2019;
    [cir] Number of families with children currently leased in proposed 
opportunity areas in the PHA's jurisdiction as of December 31, 2019;
    [cir] Voucher program attrition rate for prior three calendar 
years;
    [cir] New program lease-ups in the regular voucher program over 
past three calendar years;
    [cir] Program-wide voucher success rate as of December 31, 2019;
    [cir] Utilization rate of regular HCVs as of December 31, 2019 for 
(1) HAP expenditures compared to available budget authority and (2) 
units leased compared to authorized voucher levels;
    [cir] Utilization rate of special purpose vouchers as of December 
31, 2019 for (1) HAP expenditures compared to available budget 
authority and (2) units leased compared to authorized voucher levels 
Average days to lease as of December 31, 2019;
    [cir] Average days from receipt of request from tenancy approval to 
a passed inspection as of December 31, 2019; and

[[Page 42903]]

    [cir] Annual number of inbound and outbound ports in 2019, along 
with narrative describing the general pattern of portability for the 
PHA.
    This part is limited to eight additional pages.
Part F Need/Extent of the Problem
    In this part, joint and single PHA applicants must describe the 
need for MDVs and request the number of MDVs they would like to be 
awarded. For joint PHA applicants, all participating PHAs may request 
MDVs but at least one PHA is required to request MDVs.
    The number of MDVs requested must be supported by data showing the 
number of families with children in the jurisdiction that reside in 
high-poverty areas. PHAs must show there is adequate need for MDV 
vouchers which is not being met through other existing programs. Each 
PHA that requests MDVs must submit the request as part of their 
individual Funding Application Form HUD-52515.
    Using Table 5, joint and single PHA applicants will request the 
amount of mobility-related services funding needed for the duration of 
the demonstration which HUD anticipates being six years. Table 6 shows 
an example of how to complete Table 5 using the minimum required 
enrolled families at each PHA site included in Table 2. A single PHA 
applicant, or the lead PHA in a joint application, will submit the 
requested amount of funds for mobility-related services as part of 
their Funding Application Form HUD-52515. HUD anticipates the cost per 
enrollee for CMRS to be $4,000 and for SMRS to be $2,000.

                                                    Table 5--Proposed Enrollment and Funding Request
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   CMRS                                   SMRS                        Control group
                                                 -------------------------------------------------------------------------------------------------------
                  Voucher type                      Proposed                               Proposed                               Proposed
                                                   number of     Cost per     Funding     number of     Cost per     Funding     number of     Cost per
                                                   enrollees     enrollee     request     enrollees     enrollee     request     enrollees    enrollees
--------------------------------------------------------------------------------------------------------------------------------------------------------
Existing voucher holders........................                    $4,000                                 $2,000                                     $0
    New admissions..............................                     4,000                                  2,000                                      0
                                                 -------------------------------------------------------------------------------------------------------
    Treatment enrollment and services total
     funding request............................
--------------------------------------------------------------------------------------------------------------------------------------------------------
PHAs may request an additional 5 percent of their total services funding request for startup costs.
PHAs may request an additional 2 percent of their total services funding request for the regional project-based voucher plan. If the PHA requests
  startup funding or regional project-based voucher plan funding, please provide the request below.
Total services funding request = Startup costs funding request (5 percent of total services funding request) = Project-based voucher plan funding
  request (2 percent of total services funding request) = Dollars in this chart are in thousands.


                                  Table 6--Example Proposed Enrollment and Funding Request for Minimum Enrollment Size
                                                 [Note: dollars in the following chart are in thousands]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   CMRS                                   SMRS                        Control group
                                                 -------------------------------------------------------------------------------------------------------
                  Voucher type                      Proposed                               Proposed                               Proposed
                                                   number of     Cost per     Funding     number of     Cost per     Funding     number of     Cost per
                                                   enrollees     enrollee     request     enrollees     enrollee     request     enrollees     enrollee
--------------------------------------------------------------------------------------------------------------------------------------------------------
Existing voucher holders........................          600           $4       $2,400          600           $2       $1,200          600           $0
New admissions..................................           50            4          200           50            2          100           50            0
                                                 -------------------------------------------------------------------------------------------------------
    Treatment enrollment and services total               650  ...........        2,600          650  ...........        1,300          650  ...........
     funding request............................
--------------------------------------------------------------------------------------------------------------------------------------------------------
PHAs may request an additional 5 percent of their total services funding request for startup costs. PHAs may request an additional 2 percent of their
  total services funding request for the regional project-based voucher plan. If the PHA requests startup funding or regional project-based voucher plan
  funding, please provide the request below.
Total services funding request = $2,600,000 (CMRS) + $1,300,000 (SMRS) = $3,900,000.
Startup costs funding request (5 percent of total services funding request) = $195,000.
Regional project-based voucher plan funding request (2 percent of total services funding request) = $78,000.

    For jurisdictions that include an MTW PHA, HUD requires the joint 
or single PHA applicant to describe existing efforts to meet the 
statutory objective of increasing housing choices for low-income 
families. If the MTW PHA currently operates a housing mobility program, 
please describe the need for additional funding. If the MTW PHA does 
not currently operate a housing mobility program, please describe why 
other efforts to meet the statutory objective have not previously 
included a housing mobility program.
    This part is limited to five additional pages.
Part G Soundness of Approach
    The Appropriations Acts identifies the required elements of a 
Regional Housing Mobility Plan and authorizes the Secretary to 
establish ``any other requirements.'' In this part, joint and single 
PHA applicants will submit their Regional Housing Mobility Plan (RHMP). 
The RHMP is limited to 29 total pages, with each subpart having an 
individual page limit.
    The RHMP must include seven subparts:

 Subpart 1: Participating PHAs
 Subpart 2: Community Partnerships
 Subpart 3: Waivers
 Subpart 4: Approach to Implementing a Housing Mobility Program
 Subpart 5: Proposed Methodology and Opportunity Areas
 Subpart 6: Preferences
 Subpart 7: Other HUD Requirements

[[Page 42904]]

Subpart 1. Participating PHAs
    In this subpart, joint and single PHA applicants must submit a 
narrative that addresses the following:
     Goals for participating in the demonstration.
     If the single PHA or any participating PHA in a joint PHA 
application made a commitment of administrative fees, administrative 
fee reserves, or other in-kind contributions (e.g., existing space for 
counseling services) to support costs associated with demonstration, 
the specific amount of each commitment must be noted. Additional 
funding commitments are not required, nor will they result in higher 
rankings in the scoring process.
    Importantly, also in this subpart, joint PHA applicants must submit 
information on the roles of all participating PHAs. Joint PHA 
applicants must submit a narrative that addresses the following:
     A list of all PHAs that will participate in the 
demonstration, with the lead PHA clearly identified;
     A governance structure, including an organizational chart 
and decision-making process; and
     Roles and responsibilities of participating PHAs.
    Subpart 1 is limited to four pages. Only one Part G, subpart 1 will 
be submitted. For joint PHA applicants it will be submitted as part of 
the lead PHA's Funding Application Form HUD-52515.
Subpart 2. Community Partnerships
    In this subpart, as required by the statute, joint or single PHA 
applicants must identify any community-based organizations, nonprofit 
organizations, businesses, and other entities that will participate in 
the demonstration and describe the commitments made by each such 
entity. Joint and single PHA applicants are not required to enter any 
community partnerships or leverage outside funds for participation in 
the demonstration. Regions most in need of mobility-related services 
may have significant challenges in leveraging funding. Applicants are 
reminded that they will be required to implement a specific program 
design for the demonstration. However, applicants are not prohibited 
from entering community partnerships.
    Subpart 2 is limited to two pages. Only one Part G, subpart 2 will 
be submitted. For joint PHA applicants it will be submitted as part of 
the lead PHA's Funding Application Form HUD-52515. Any MOUs, 
agreements, or contracts related to these partnerships may be included 
in Part J, Memorandum of Understanding, and do not count toward this 
page limit.
Subpart 3. Waivers
    In this subpart, joint and single PHA applicants must submit 
information on the waivers or alternative requirements intended to be 
exercised for the demonstration program that have been described in 
Section VI Waivers and Alternative Requirements for the Demonstration.
    Regulatory waivers for good cause may also be requested, subject to 
statutory limitations and pursuant to 24 CFR 5.110. This part must 
identify both types of requested waivers--those identified in the 
Section VII Waivers and Alternative Requirements for the Demonstration 
and other requested waivers.
    PHAs have up to 90 days after notification of award to notify HUD 
of programmatic regulatory waiver requests necessary to implement the 
demonstration. PHAs will inform HUD of the waiver requested and provide 
good cause for why such waivers are needed. PHAs may identify 
additional programmatic regulatory waivers, so HUD will continue to 
accept and review good cause programmatic regulatory waivers throughout 
the demonstration, if necessary.
    Subpart 3 is limited to three pages. Only one Part G, subpart 3 
will be submitted. For joint PHA applicants it will be submitted as 
part of the lead PHA's Funding Application Form HUD-52515.
Subpart 4. Approach To Implementing a Housing Mobility Program
    In this subpart, joint and single PHA applicants must submit an 
explanation of their proposed approach for participating in the 
demonstration and a proposed set of mobility-related services. This 
response must include a clear implementation plan for the 
demonstration. The narrative must include, at a minimum, proposed plans 
for the following:
     Providing mobility-related services to families 
participating in the demonstration;
     Modifying the Comprehensive Mobility Related Services 
(CMRS) and proposing the Selected Mobility Related Services (SMRS) to 
be implemented; \30\
---------------------------------------------------------------------------

    \30\ PHAs are reminded that the final set of CMRS and SMRS will 
be determined collaboratively between PHAs and HUD after selection.
---------------------------------------------------------------------------

     Recruiting and enrolling at least the minimum number of 
families to participate in the demonstration;
     Executing the required PHA responsibilities related to the 
evaluation;
     Monitoring the implementation of the demonstration; and
     Administering the program (in-house or through a hired 
contractor). The PHA must estimate how many staff the PHA or contractor 
intends to dedicate to the demonstration. If new PHA staff will be 
hired, PHAs are encouraged to describe the plan to hire and train 
qualified staff.
     Adopting administrative policies to support the 
demonstration. These may include:
    [cir] Adopting high enough payment standards for families to access 
opportunity areas. If the PHA(s) does not currently use Small Area Fair 
Market Rent (SAFMR), this section must indicate whether the PHA will 
opt-in to the use of SAFMRs, or if not, their alternative method of 
ensuring adequate payment standards in opportunity areas;
    [cir] Extending the voucher search term. The PHA must indicate 
their policies on voucher search times and the duration such extensions 
will be granted; and
    [cir] Adopting and aligning policies to make it easier for 
landlords to participate in the HCV program.
    For single agency applicants (Category D), the narrative must also 
include a description of how families will be able to access a wide 
range of housing choices in the jurisdiction and across jurisdictional 
lines, if applicable.
    For joint PHA applicants only (Categories A, B, and C), the 
narrative must also include descriptions of the following:
     How the demonstration, including services and research, 
will be implemented at multiple PHA sites. This must include the roles 
and responsibilities of each PHA.
     How the PHAs together will streamline portability 
procedures to allow families to move across jurisdictional lines more 
easily, if applicable.
    If a joint PHA applicant includes an MTW agency, or if the single 
PHA applicant is an MTW agency, describe any MTW initiatives that could 
complicate the research or limit housing mobility (e.g. rent reform and 
restrictions on moves or portability).
    Joint and single PHA applicants are encouraged, but not required, 
to identify the barriers families with children have when using their 
voucher, particularly in low-poverty, opportunity neighborhoods in the 
jurisdiction(s). Joint and single PHA applicants are encouraged, but 
not required, to describe the regulatory and policy environment related 
to voucher utilization throughout their jurisdictions. Examples 
include: Any adopted or proposed voucher non-

[[Page 42905]]

discrimination laws, inclusionary zoning, prioritization of project-
based vouchers and/or LIHTC in opportunity areas, rent control, and 
landlord mitigation funds.
    Subpart 4 is limited to 14 pages. Only one Part G, subpart 4 will 
be submitted. For joint PHA applicants it will be submitted with the 
lead PHA's Funding Application Form HUD-52515.
Subpart 5. Proposed Methodology and Opportunity Areas
    Paragraph (c)(5) of Section 235 of Title II of the 2019 
Appropriations Act states that PHAs must, ``specify the criteria that 
the public housing agencies would use to identify opportunity areas.'' 
In this subpart, joint and single PHA applicants must describe their 
proposed opportunity areas and the methodology. The described 
methodology must incorporate HUD's minimum criteria and should include 
the criteria proposed by the PHA(s). For purposes of this 
demonstration, HUD's minimum criteria for an opportunity area is a 
Census tract in which the family poverty rate is less than 20 percent. 
In no case will such areas have a family poverty rate equal to or 
greater than 20 percent.
    Examples of additional criteria that might be proposed by PHAs 
might include school performance, access to transportation, 
availability of educational and employment opportunities, and access to 
essential businesses.
    As discussed throughout this notice, HUD is requiring that selected 
PHAs work together with HUD to identify the specific areas in their 
jurisdiction to be designated as opportunity areas. PHAs that are 
selected will have an opportunity for input on the basic criteria and 
data sources to be used to designate opportunity areas. In this 
process, PHAs will have the opportunity to discuss their proposed 
criteria, and the ability to apply local information and knowledge of 
market conditions.
    This structure will allow for a common approach in defining 
opportunity areas across all demonstration sites, while leaving the 
specific designations in each jurisdiction up to the agreement between 
each site and HUD. The final designations of the specific areas will be 
determined in a collaborative manner.
    All PHAs should use the tool located at https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/mobilitydemo to 
create a map of their proposed opportunity areas that will be submitted 
in the application.
    Subpart 5 is limited to four pages. Only one Part G, subpart 5 will 
be submitted. For joint PHA applicants it will be submitted with the 
lead PHA's Funding Application Form HUD-52515.
Subpart 6. Preferences
    Joint and single PHA applicants must certify adoption of the 
required preference in part L. The required preference is described in 
the Section II Research Evaluation, Required HCV Waiting List 
Preference. Joint and single PHA applicants respond to Part G, subpart 
6 Preferences, in Part L Program Specific Certifications.
    No additional information is required for Subpart 6.
Subpart 7. Other HUD Requirements
    In this subpart, for joint PHA applicants that will include more 
than one FSS agency, the PHA must indicate any FSS Action Plan policies 
that will not align with the demonstration. Also, the PHA must describe 
how FSS and mobility-related services will be coordinated to avoid the 
duplication of services and activities.
    Subpart 7 is limited to two pages. Only one Part G, subpart 7 will 
be submitted. For joint PHA applicants it will be submitted with the 
lead PHA's Funding Application Form HUD-52515.
Part J Memorandum of Understanding
    In this part, each PHA participating in a joint PHA application and 
single PHA applicants must submit a board resolution evidencing the 
PHA's interest in participating in the demonstration, willingness to 
comply with all applicable requirements and the evaluation, and the 
reporting requirements in Section XII Reporting and Recordkeeping 
Requirements.
    For PHAs submitting a joint PHA application, this section must 
include the agreements between participating PHAs, including clear 
identification of the lead PHA that will receive the mobility-related 
services funding. HUD must be able to determine from the attached 
agreements which entity or entities are proposed to provide mobility-
related services.
    Joint and single PHA applicants may also submit any memoranda of 
understanding, letters of commitment on agency letterhead, agreements, 
board resolutions or contracts related to the demonstration in this 
section.
    This part has no page limit. Only one Part J will be submitted. For 
joint PHA applicants it will be submitted with the lead PHA's Funding 
Application Form HUD-52515.
Part K Other Information Required
    In this part, joint and single PHA applicants must indicate which 
eligibility category they meet and submit supporting documentation.
    This part has no page limit. Only one Part K will be submitted. For 
joint PHA applicants it will be submitted with the lead PHA's Funding 
Application Form HUD-52515.
Category A (PHA Partnerships)
    PHAs are eligible to participate under Category A if together they 
serve areas with high concentrations of voucher holders in poor, low-
opportunity neighborhoods and have an adequate number of moderately 
priced rental units in high-opportunity areas.
    To qualify under Category A, more than one PHA must be part of the 
demonstration. In this section, PHAs must identify the PHAs applying 
together and their combined service area.
    PHAs must also document whether they together serve areas with high 
concentrations of voucher holders in poor, low-opportunity 
neighborhoods and have an adequate number of moderately priced rental 
units in high-opportunity areas. PHAs can document this in one of two 
ways:
    (1) Submit documentation that all PHAs applying under this category 
together are located within a metropolitan area for which HUD has 
designated the use of mandatory SAFMRs and all of the PHAs that are 
applying have implemented the SAFMRs.\31\ There are 24 designated SAFMR 
metropolitan areas. A list of these metropolitan areas is provided at 
the end of this notice, in Attachment A.
---------------------------------------------------------------------------

    \31\ To assist PHAs and simplify the process for applying for 
the demonstration, HUD has determined that the criteria for 
designating metropolitan areas for the use of SAFMRs under 24 CFR 
888.113(c) meets the statutory definitions required in Category A of 
this demonstration. The SAFMR definition requires having a 
percentage of voucher families living in concentrated low-income 
areas relative to all renters within the area must be at least 25 
percent. This meets the statutory definition for the demonstration 
of ``serving high concentrations of voucher holders in poor, low-
opportunity neighborhoods.'' The SAFMR criteria also includes that 
at least 20 percent of the standard quality rental stock, within the 
metropolitan FMR area, is in small areas (ZIP codes) where the Small 
Area FMR is more than 110 percent of the metropolitan FMR. This 
meets the statutory definition for the demonstration of ``have an 
adequate number of moderately priced rental units in high-
opportunity areas.''
---------------------------------------------------------------------------

    (2) Submit documentation showing the joint applicant meets both of 
the following requirements: \32\
---------------------------------------------------------------------------

    \32\ The data sources for these requirements are described in 
the tools and spreadsheets available at https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/mobilitydemo.

---------------------------------------------------------------------------

[[Page 42906]]

    a. Using a list of PHAs posted by HUD at https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/mobilitydemo \33\ 
confirm that one or more of the joint applicant PHAs has a percentile 
score of 60 or above in at least one of two categories:
---------------------------------------------------------------------------

    \33\ Only PHAs with 100 or more voucher families with children 
are included on the ranking list.
---------------------------------------------------------------------------

    i. Percentage of voucher holder concentration in poor, low-
opportunity neighborhoods compared to all PHAs with 100 more voucher 
families with children
    ii. Number of voucher holders in poor, low-opportunity 
neighborhoods compared to all PHAs with 100 or more voucher families 
with children
    For the purposes of this demonstration, census tracts that have (i) 
greater than 25 percent poverty or (ii) designated as a qualified 
census tract under the LIHTC program are considered ``poor, low-poverty 
neighborhoods.''
    b. Using a data tool of Zip Code Tabulation Areas (ZCTAs) provided 
by HUD at https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/mobilitydemo submit a calculation showing that the 
combined service area of the applicant PHAs have an adequate number of 
moderately priced rental units in high-opportunity areas. To qualify, 
at least 20 percent of the standard-quality-rental-stock within the 
combined service area must be renting at less than 110 percent of SAFMR 
in ZCTAs where the SAFMR is more than 110 percent of the Metropolitan 
Area FMR. The applicant PHAs must submit the calculation as well as the 
full listing of ZCTAs that represent their service areas.
Category B (Consortia With High-Performing FSS Program)
    PHAs are eligible to participate under Category B as a (i) 
consortium, (ii) planned consortium, (iii) planned single HCV funding 
contract consortium, or (iv) planned partial consortium of PHAs, so 
long as the consortium includes at least one agency with a high-
performing FSS program.
    PHAs must specify the type of consortium they are in or intend to 
form if selected for the demonstration under Category B. PHAs applying 
as a consortium or planned consortium must submit the current or 
planned consortium agreement.
    PHAs applying as a proposed single HCV funding contract consortium 
or partial consortium must submit a narrative description of their 
proposal, including the combined jurisdiction of the PHAs participating 
in the consortium. PHAs must identify any regulatory waivers or 
alternative requirements necessary to implement a planned single HCV 
funding contract consortium or partial consortium under this category.
    Under a single HCV funding contract consortium or partial 
consortium, PHAs will execute an agreement among participating PHAs 
which governs the formation and operation of the consortium. Only PHAs 
selected for the demonstration will be allowed to enter into the single 
HCV funding contract consortium or partial consortium agreement and 
shall submit an unexecuted agreement as part of their application. In 
addition to any requirements under PIH Notice 2018-12 and 24 CFR part 
943, the agreement must specify the following:
     The names of the participating PHAs;
     A description of whether the consortium is forming using a 
transfer or a consolidation;
     The period of existence of the consortium and the terms 
under which a PHA may join or withdraw from the consortium before the 
end of that period;
     A statement acknowledging that if the PHAs decide to 
dissolve the consortium and reverse the transfer or consolidation of 
funding and units, PHAs will inform HUD on how funds and units are 
distributed to participating PHAs;
     The name of the lead agency;
     The functions to be performed by the lead agency and the 
other participating PHAs; and
     If selected, the proposed agreement must be signed by an 
authorized representative of each participating PHA.
    In addition to documentation related to the consortium, PHAs 
applying under Category B must identify the PHA(s) that operates an FSS 
program. HUD will consider any agency that has an FSS program to have a 
high-performing FSS program.\34\
---------------------------------------------------------------------------

    \34\ The 2020 Appropriations Act limits HUD's ability to make 
awards based on an FSS performance measurement system.
---------------------------------------------------------------------------

Category C (Consortia With Small PHA)
    PHAs are eligible to participate under Category C as either (i) 
consortium, (ii) planned consortium, (iii) planned single HCV funding 
contract consortium, or (iv) planned partial consortium of PHAs so long 
as they serve jurisdictions within a single region, include one or more 
small agencies, and consolidate mobility-focused operations.
    PHAs must specify the type of consortium they are in or intend to 
form if selected for the demonstration under Category B. PHAs applying 
as a consortium or planned consortium must submit the current or 
planned consortium agreement.
    PHAs applying as a proposed single HCV funding contract consortium 
or partial consortium must submit a narrative description of their 
proposal, including the combined jurisdiction of the PHAs participating 
in the consortium. PHAs must identify any regulatory waivers or 
alternative requirements necessary to implement a planned single HCV 
funding contract consortium or partial consortium under this category.
    Under a single HCV funding contract consortium or planned partial 
consortium, PHAs will execute an agreement among participating PHAs 
which governs the formation and operation of the consortium. Only PHAs 
selected for the demonstration will be allowed to enter into the single 
HCV funding contract consortium or partial consortium agreement and 
shall submit an unexecuted agreement as part of their application. In 
addition to any requirements under PIH Notice 2018-12 and 24 CFR part 
943, the agreement must specify the following:
     The names of the participating PHAs;
     A description of whether the consortium is forming using a 
transfer or a consolidation;
     The period of existence of the consortium and the terms 
under which a PHA may join or withdraw from the consortium before the 
end of that period;
     A statement acknowledging that if the PHAs decide to 
dissolve the consortium and reverse the transfer or consolidation of 
funding and units, PHAs will inform HUD on how funds and units are 
distributed to participating PHAs;
     The name of the lead agency;
     The functions to be performed by the lead agency and the 
other participating PHAs; and
     The proposed agreement must be signed by an authorized 
representative of each participating PHA.
    In addition to documentation related to the consortium, PHAs 
applying under Category C must identify the small PHA(s) and the number 
of ACC units administered by the small PHA(s). For the purposes of the 
demonstration, a small PHA is defined as an agency for which the sum of 
the number of public housing dwelling units administered by the agency 
and the number of vouchers under Section 8(o) of the 1937 Act is 550 or 
fewer (from paragraph (a)(2)(A) of 42 U.S.C. 1437z-10).

[[Page 42907]]

    PHAs must identify how they will consolidate mobility-focused 
operations. PHAs must identify the region in which the demonstration 
will be implemented. The region is generally defined as the 
metropolitan statistical area. However, there may be exceptional 
circumstances for PHAs to designate an alternative geography as their 
region. For example, an applicant might designate a state as the region 
when the consortium includes an agency with statewide voucher 
administration authority. It might also be the case that an application 
proposes to use a county or group of counties as the proposed region, 
depending on PHA service areas and market conditions. HUD will consider 
such proposals as alternatives to the use of MSAs. HUD also recognizes 
that PHAs are still subject to their own state and local requirements 
for authority to operate and administer HCVs.
Category D (Single Agency)
    Paragraph (b)(1)(D) of Section 235 of Title II of the 2019 
Appropriations Act authorizes HUD to establish other categories of PHAs 
that are eligible to participate in the demonstration. Under this 
authority, HUD has established that any single agency that otherwise 
meets the requirements under Category A is eligible to participate in 
the demonstration. To document eligibility, the agency must define 
where the demonstration will be implemented. An example of this is if 
the applicant is a statewide agency, identify the metropolitan area(s) 
of focus. Another example is if the applicant is a large, regional 
agency, identify the neighborhoods of focus. The single agency must 
otherwise follow the documentation requirements described in Category 
A.
Part L Program Specific Certifications
    Each participating PHA, as part of a joint PHA application or a 
single agency application, must submit the following certifications as 
part of their individual Funding Application Form HUD-52515. This part 
has no page limit. Each PHA must certify that:
    1. The PHA will adopt the required waiting list preference and will 
update its PHA Plan and Administrative Plan to incorporate the 
preference.
    2. The PHA will update its PHA Plan and Administrative Plan, as 
applicable, to implement policies adopted as part of the demonstration.
    3. The PHA will work together with HUD to finalize mobility-related 
services, opportunity areas, and other components of the demonstration.
    4. The PHA will offer the agreed upon CMRS and SMRS, even if that 
may differ from their submitted proposal.
    5. The PHA will adopt adequate payment standards in opportunity 
areas. Payment standards will be finalized with HUD after selection, 
and the same payment standard will be offered to families in the 
treatment and control groups.
    6. The PHA will offer mobility-related services until such time as 
an adequate sample size has been attained, or service funding has been 
expended, whichever comes first.
    7. The PHA will sign a memorandum of understanding and a 
performance standards agreement with HUD to indicate agreement with the 
finalized program design, services, opportunity areas, and other 
components of the demonstration OR sign a declaration of withdrawal 
from the demonstration if the PHA does not agree to the finalized 
services, opportunity areas, and other components of the demonstration. 
Should the PHA decide it no longer wants to participate in the 
demonstration, the PHA must inform HUD prior to implementation. PHAs 
will not be allowed to withdraw from the demonstration without HUD 
approval after the implementation date.
    8. The PHA will adhere to the program performance standards 
agreement between HUD and the PHA, executed after selection, that 
describes terms and conditions of participation, including, but not 
limited to: Utilization requirements, recapture and reallocation terms, 
and a payment schedule for mobility-related services.
    9. The PHA certifies that the information provided on HUD Form-2880 
and HUD Form-52515 and in any accompanying documentation is true and 
accurate. The PHA acknowledges that making, presenting, or submitting a 
false, fictious, or fraudulent statement, representation, or 
certification may result in criminal, civil, and/or administrative 
sanctions, including fines, penalties, and imprisonment.

Application for Federal Assistance Form SF-424

    Standard Form 424 (SF-424) is the Family of government-wide forms 
required to apply for Federal Assistance Programs, which provide 
discretionary Federal grants and other forms of financial assistance. 
Applicants for this Federal assistance program must sign and submit all 
required forms in the SF-424 Family of forms, including SF-424B.
    For joint PHA applicants, each participating PHA that requests MDVs 
must complete the Application for Federal Assistance Form SF-424, 
including SF-424B. The request for mobility-related service funding 
should be included as part of the lead PHA's Form SF-424. Each single 
agency applicant also must complete these forms.
    For the questions in SF-424 identified in table 7 below, HUD 
recommends the following answers:

           Table 7: Recommended Answers to Questions in SF-424
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Question 2........................  Check ``New.''
Question 5a.......................  The Federal Identifier requested in
                                     5a is the PHA code of each
                                     applicant PHA (e.g., MD035 or
                                     AK002).
Question 5b.......................  Leave blank.
Question 15.......................  You may choose the title. However,
                                     we suggest using the name (or
                                     abbreviation) of your PHA plus HCV
                                     Mobility Demonstration.
Question 16.......................  If the location of your office and
                                     the location of the program/project
                                     is within the same Congressional
                                     District, you should indicate the
                                     same answer for both parts.
Question 17.......................  Most applicants should indicate
                                     Month, Date, Year--Month, Date
                                     Year. However, this is an estimate
                                     and the actual dates will be
                                     determined at grant agreement.
Question 18.......................  Will be the funding amount requested
                                     from HUD in this HCV mobility
                                     demonstration Notice. Each PHA,
                                     whether part of a joint or single
                                     PHA application, requesting MDVs
                                     must estimate their funding needs.
                                     PHAs should do this by determining
                                     the HAP amount (based on the
                                     Voucher Management System or VMS)
                                     needed to fund a 3-bedroom unit for
                                     12 months. Then the PHA should
                                     multiply this number by the number
                                     of vouchers they would like to be
                                     awarded. Enter this number in 18a.
                                     Do not include administrative fees
                                     in this amount. Administrative fees
                                     will be paid based on vouchers
                                     leased, however, they are not
                                     factored into the award amount.

[[Page 42908]]

 
                                    For joint applicant PHAs, the lead
                                     PHA must also include the total
                                     requested amount of mobility-
                                     related service dollars. Enter this
                                     in 18e.
                                    Single agency applicants must also
                                     include the total requested amount
                                     of mobility-related service
                                     dollars. Enter this number in 18e.
Question 19.......................  Answer c. Program is not covered by
                                     Executive Order 12372.
------------------------------------------------------------------------

Intergovernmental Review

    This program is not subject to Executive Order 12372, 
Intergovernmental Review of Federal Programs.

Other Submission Requirements

Application Certifications and Assurances
    By signing the forms in the SF-424 the applicant and the signing 
authorized representative affirm that they have reviewed the 
certifications and assurances associated with the Application for 
Federal Assistance. Additionally the authorized representative (1) are 
aware that the submission of the SF-424 is an assertion that the 
relevant certifications and assurances are established, and (2) 
acknowledge that the truthfulness of the certifications and assurances 
are material representations upon which HUD will rely when making an 
award to the applicant. If it is later determined that the signing 
authorized representative made a false certification or assurance, 
caused the submission of a false certification or assurance, or did not 
have the authority to make a legally binding commitment for the 
applicant, the applicant and the authorized representative may be 
subject to administrative, civil, or criminal action. Additionally, HUD 
may terminate the award to the applicant organization or pursue other 
available remedies. Each applicant is responsible for including the 
correct certifications and assurances with its application submission, 
including those applicable to all applicants, those applicable only to 
Federally recognized Indian tribes, and those applicable to applicants 
other than Federally-recognized Indian tribes.
Lead Based Paint Requirements
    When providing education or counseling on buying or renting housing 
that may include pre-1978 housing, and when required by regulation or 
policy, applicants must inform clients of their rights under the Lead 
Disclosure Rule (24 CFR part 35, subpart A), and, if the focus of the 
education or counseling is on rental or purchase of HUD-assisted pre-
1978 housing, the Lead Safe Housing Rule (subparts B, R, and, as 
applicable, F-M).

VIII. Rating Factors

    PHAs must meet all eligibility criteria described in Section VII 
Application Format. PHAs must also submit an application in the format 
required by Section VII Application Format. PHAs can receive up to 100 
points for their application, in accordance with the rating factors 
specified in this section. The rating factor scores that PHAs receive 
will be used to help rank PHAs for funding. HUD may rely on performance 
monitoring and audit reports, financial status information, and other 
information available to HUD to make selection and funding 
determinations. For Rating Factors 1 and 2 below, the joint or single 
agency applicants must submit documentation, described in Section VII 
Application Format, to earn points. For Rating Factor 3, HUD completed 
a regional need analysis and will assign points based on that analysis, 
as well as the PHA service area, which is described in Section VII 
Application Format. Applicants do not need to submit any additional 
information in their application for Rating Factor 3.

Rating Factor 1: Approach To Implementing the Demonstration (40 Points)

    As required by the Appropriations Acts, PHAs are required to submit 
a Regional Housing Mobility Plan (RHMP). In the Approach to 
Implementing the Demonstration Rating Factor, HUD will be evaluating 
the PHA's RHMP and overall approach to implementing the demonstration, 
with the understanding that the final set of services will be decided 
collaboratively after selection. No PHA will receive more than 40 
points for this factor. The following will be evaluated:
    1. Approach to implementing the Regional Housing Mobility Plan (6 
points);
    2. Approach to implementing the evaluation and enrollment plan (5 
points);
    3. Available applicants and program participants to meet 
requirements of research evaluation design (10 points);
    4. Jurisdictional and regional reach of mobility program (5 
points);
    5. Approach to implementing mobility-related services (10 points);
    6. Proposed administrative policies (2 points); and
    7. Proposed opportunity areas and payment standards (2 points).

Rating Factor 2: Prior Experience (30 Points)

    Implementation of the demonstration will be a complex and 
collaborative effort between HUD and the selected PHAs. In this rating 
factor, HUD will evaluate a PHA's prior experiences to gauge the PHA's 
capacity to implement the demonstration. No PHA will receive more than 
30 points for this factor. The following elements of prior experience 
will be evaluated:
    1. Prior experience implementing policies and/or programs that 
promote housing choices for families with children, particularly 
policies and/or programs that promote expanded choices in opportunity 
areas. Experience implementing a housing mobility program or other 
mobility related services will be considered under this subfactor (10 
points);
    2. Prior experience implementing and administering federal, state, 
local or non-profit grants, programs or activities that demonstrate PHA 
capacity, which may include, but are not limited to: Special purpose 
vouchers (e.g. HUD-VASH, Family Unification, Mainstream vouchers, 
etc.), the Rental Assistance Demonstration, LIHTC, CDBG, HOPE VI or 
Choice Neighborhoods grants (5 points);
    3. Prior experience working together with other PHAs on a regional 
basis, such as engaging in regional efforts around portability or other 
collaborations (5 points);
    4. Prior experience of applicant PHAs in participating in 
randomized controlled trial, research, evaluations, or demonstrations, 
such as quantitative or qualitative research, or other experiences with 
data analysis and/or mapping (5 points); and
    5. Prior experience managing HCV waiting lists, utilization, and 
success rate effectively (5 points).

Rating Factor 3: Regional Need and Available Rental Units (30 Points)

    For the demonstration to be successful, PHAs must have adequate 
number of voucher holders with children living in neighborhoods with

[[Page 42909]]

high concentrations of poverty. HUD ranked all PHAs that serve over 100 
families with children in two separate voucher holder concentration 
categories. The categories are: (1) Number of voucher holders with 
children in the PHA's jurisdiction living in Census tracts that have 
greater than 25 percent poverty or are qualified Census tracts (QCTs) 
as defined under the LIHTC program, and (2) percentage of voucher 
holders with children living in Census tracts that have greater than 25 
percent poverty or are qualified Census tracts (QCT) in the PHA's 
jurisdiction, as defined under the LIHTC program.\35\
---------------------------------------------------------------------------

    \35\ The data sources for these requirements are described in 
the tools and spreadsheets available at https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/mobilitydemo.
---------------------------------------------------------------------------

    Within these two categories, HUD then ranked PHAs from one to five 
based on the degree of concentration with five being the highest 
concentration. This categorical ranking information based on 
concentration is provided at https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/mobilitydemo.
    HUD will use the highest ranking earned by the PHA in either 
category.
    For single agency applicants (Category D) a rank of five earns 30 
points; a rank of four earns 20 points; and a rank of three earns 10 
points. All others get zero points.
    For joint PHA applicants, if one or more PHA has a rank of five, 
the application gets 30 points. If no PHA has a rank of five, but one 
or more has a rank of four, the application gets 20 points. If no PHA 
has a rank of four or five, but one or more PHA has a rank of three, 
the application gets 10 points. All others get zero points.

IX. Application Deadlines

Contact Information and Due Dates

    Each application must be submitted electronically as a PDF or 
Microsoft Word document (1997 version or higher) to 
[email protected]. The subject line of the submittal 
email must read ``[Insert PHA Code]: Housing Choice Voucher Mobility 
Demonstration Program.'' The body of the email must include the name of 
the person submitting the application. The lead agency shall be 
responsible for submitting the application to HUD, no later than 
October 13, 2020. Applications that are submitted after midnight on 
October 13, 2020, or fail to include the required elements, will be 
ineligible for consideration by HUD.

Extensions

    HUD may extend the application deadline for any program if HUD.gov 
systems are offline or not available to applicants for at least 24 
hours immediately prior to the deadline date, or if the system is down 
for 24 hours or longer and that impacts the ability of applicants to 
cure a submission deficiency within the grace period.
    HUD may also extend the application deadline upon request if there 
is a presidentially-declared disaster in the applicant's area. If these 
events occur, HUD will post a notice on its website establishing the 
new, extended deadline for the affected applicants.

Amending or Resubmitting an Application

    Before the submission deadline, PHAs may resubmit a revised 
application containing new or changed material. The resubmitted 
application must be received by the applicable deadline. If HUD 
receives an original and a revised application for a single proposal, 
HUD will only evaluate the last submission received before the 
deadline.

Late Applications

    An application received after the deadline date will be marked late 
and will not be reviewed by HUD for funding consideration.

Corrections to Deficient Applications

    HUD will not consider information from applicants after the 
application deadline. HUD may contact the applicant to clarify 
information submitted prior to the deadline. Deficiencies typically 
involve missing documents, information on a form, or some other type of 
unsatisfied information request (e.g., an unsigned form, unchecked 
box). Depending on specific criteria, deficiencies may either be 
curable or non-curable.
    A curable deficiency is an error or oversight that, if corrected, 
would not alter, in a positive or negative fashion, the rating of the 
application. To be a curable deficiency, it must not be an eligibility 
criterion, with the following exceptions: (1) Documentation of 
applicant eligibility, and (2) miscategorized applicant eligibility 
(Category A, B, C or D). Since these exceptions will not influence how 
an applicant is ranked or scored against other applicants, it can be 
remedied within the time frame specified in the notice of deficiency. 
HUD will uniformly notify applicants of each curable deficiency. A non-
curable deficiency is one that, if corrected, would change an 
applicant's score or rank. Non-curable deficiencies may result in an 
application being marked ineligible, or otherwise adversely affect an 
applications' score and final determination.
    Applicants must email corrections of curable deficiencies to 
[email protected] within the time limits specified in 
the notification. The time allowed to correct deficiencies will be no 
less than 48 hours and no more than 14 calendar days from the date of 
the notification.

X. Application Review Process

    After the application deadline, HUD will review all applications 
that meet the eligibility criteria. Following the evaluation process, 
HUD will notify successful applicants of their selection for funding. 
HUD will also notify other applicants, whose applications were received 
by the deadline, but have not been selected for the demonstration.

Past Performance

    When evaluating applications for funding, HUD will, whenever 
possible, obtain past performance information to confirm certifications 
claimed by the PHA.
    HUD will also consider an applicant's past performance in managing 
funds. Items HUD may consider include, but are not limited to:
     The ability to account for funds appropriately;
     Timely use of funds received from HUD;
     Timely submission and quality of reports submitted to HUD;
     Meeting program requirements;
     Meeting performance targets as established in the grant 
agreement;
     The applicant's organizational capacity, including 
staffing structures and capabilities;
     Timelines for completion of activities and receipt of 
promised matching or leveraged funds; and
     The number of persons to be served or targeted for 
assistance.

Negotiation

    After HUD has made selections, HUD may negotiate specific terms of 
the funding agreement and budget with selected applicants. If HUD and a 
selected applicant do not successfully conclude negotiations in a 
timely manner, or a selected applicant fails to provide requested 
information, an award will not be made to that applicant. In this case, 
HUD may select another eligible applicant.

Special Conditions

    HUD may impose special conditions on an award as provided under 2 
CFR 200.207:

[[Page 42910]]

     Based on HUD's review of the applicant's risk under 2 CFR 
200.205;
     When the applicant or recipient has a history of failure 
to comply with the general or specific terms and conditions of a 
Federal award;
     When the applicant or recipient fails to meet expected 
performance goals; or
     When the applicant or recipient is not otherwise 
responsible.

Adjustments to Funding

    To ensure the fair distribution of funds and enable the purposes or 
requirements of a specific program to be met, HUD reserves the right to 
fund less than the amount requested in an application.
    If funds are available after funding the highest-ranking 
application, HUD may fund all or part of another eligible fundable 
application. If an applicant turns down an award offer, or if HUD and 
an applicant do not successfully complete grant negotiations, HUD may 
make an offer of funding to another eligible application.
    If funds remain after all selections have been made, remaining 
funds may be made available within the current fiscal year for initial 
awardees in shortages, where the initial per unit cost (PUC) considered 
for the vouchers was insufficient to fully lease up the voucher 
awarded, due to market conditions or other justifiable causes. HUD is 
limited to up to $10 million total for HAP funds whether or not that is 
sufficient to fully lease up authorized MDVs awarded to PHAs. The 
remainder of the total funding made available under this notice is for 
mobility-related services and HUD is limited by that amount.
    If, after announcement of awards made under the current notice, 
additional funds become available either through the current 
appropriations, a supplemental appropriation, other appropriations or 
recapture of funds, HUD may use the additional funds to provide 
additional funding to an applicant awarded less than the requested 
amount of funds to make the full award, and/or to fund additional 
applicants that were eligible to receive an award but for which there 
were no funds available.

Funding Errors

    If HUD makes an error that when corrected would cause selection of 
an applicant during the funding round of this notice, HUD may select 
that applicant for funding, subject to the availability of funds.

XI. Administrative, National, and Department Policy Requirements for 
HUD Recipients

    For this notice, the following administrative, national and 
department policy requirements and terms for HUD financial assistance 
awards apply.
    These non-discrimination and equal opportunity authorities and 
other requirements apply to all competitive awards.
     Compliance with fair housing and civil rights laws, which 
encompass the Fair Housing Act and related authorities (24 CFR 
5.105(a)).
     Affirmatively furthering fair housing.
     Improving access to services for persons with limited 
English proficiency (LEP).
     Accessible technology.
     Equal access to housing regardless of sexual orientation 
or gender identity.
     Equal participation of Faith-Based organizations in HUD 
programs and activities.
     Participation in HUD-sponsored program evaluation.
     Accessibility for persons with disabilities.
     Violence Against Women Act.
     Environmental Requirements: In accordance with 24 CFR 
50.19(b)(1), (3), (11) and (12); and 24 CFR 58.34(a)(1) and (3); and 24 
CFR 58.35(b)(1) and (2); activities funded under this notice are exempt 
or categorically excluded from environmental review under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321, et seq.) and not 
subject to environmental review under related laws and authorities.
    Further information on each applicable criteria can be found here: 
General Administration Requirements and Terms for HUD Assistance Awards 
(https://www.hud.gov/sites/dfiles/SPM/documents/Gen_Admin_Req_Terms-FY19-HUD.Assistance.Awards.docx?web=1).

XII. Reporting and Recordkeeping Requirements

Federal Audit Reporting

    HUD requires recipients to submit performance and financial reports 
under Office of Management and Budget (OMB) guidance and program 
instructions.
    Applicants should note that if the total Federal share of an 
applicant's Federal award includes more than $500,000 over the period 
of performance, the applicant may be subject to post award reporting 
requirements reflected in 2 CFR part 200, appendix XII-Award Term and 
Condition for Recipient Integrity and Performance Matters.

Public and Indian Housing Information Center (PIC) Reporting

    Under the demonstration program, PHAs will be required to follow 
HUD requirements for PIC reporting. This may include using new program 
codes on line 2n of Form HUD-50058 (e.g., MDV). PHAs must agree to 100 
percent PIC reporting for the MDVs, including submission of voucher 
issuance date and voucher expiration date.

Voucher Management System Reporting

    PHAs will be required to follow HUD guidance for reporting MDV HAP 
and unit months leased, and mobility-related service expenditures in 
the Voucher Management System.

Reporting on non-HUD Funds

    PHAs will be required to follow HUD guidance on reporting related 
to the use of non-HUD funds contributed to the demonstration.

Performance Reporting

    All HUD-funded programs, including this program, require recipients 
to submit, at least annually, a report documenting achievement of 
outcomes under the purpose of the program and the work plan in the 
award agreement.

Race, Ethnicity, and Other Data Reporting

    HUD requires recipients that provide HUD funded program benefits to 
individuals or families to report data on the race, color, religion, 
sex, national origin, age, disability, and family characteristics of 
persons and households who are applicants for, participants in, or 
beneficiaries or potential beneficiaries of HUD programs in order to 
carry out the Department's responsibilities under the Fair Housing Act, 
Executive Order 11063, Title VI of the Civil Rights Act of 1964, and 
Section 562 of the Housing and Community Development Act of 1987.

Debriefing

    For a period of at least 120 days, beginning 30 days after the 
public announcement of awards under this notice, HUD will provide a 
debriefing related to their application to requesting applicants. A 
request for debriefing must be made in writing or by email by the 
authorized official whose signature appears on the SF-424 or by his or 
her successor in office. If the request is made by email, it must be 
submitted to [email protected]. Information provided 
during a debriefing may include the final score the applicant received 
for each rating factor, final evaluator comments for each rating 
factor, and the final

[[Page 42911]]

assessment indicating the basis upon which funding was approved or 
denied.

Agency Contacts

    HUD staff will be available to provide clarification on the content 
of this notice. Questions regarding specific program requirements for 
this notice should be directed to [email protected]. 
Please note that HUD staff cannot assist applicants in preparing their 
applications.

Other Information

    National Environmental Policy Act. This Notice of Funding 
Availability (NOFA) provides funding under, and does not alter the 
environmental requirements of, 24 CFR part 982. Accordingly, under 24 
CFR 50.19(c)(5), this NOFA is categorically excluded from environmental 
review under the National Environmental Policy Act of 1969, (42 U.S.C. 
4321, et seq.). The environmental review provisions in 24 CFR part 982 
are found at Sec. Sec.  982.305(b)(3), 982.626(c), 982.628(e), 
982.631(b)(3), 982.637(b). However, these environmental review 
provisions are not applicable to activities under this NOFA, which are 
exempt or categorically excluded from environmental review.
Information Collection Requirements
    The information collection requirements for this demonstration have 
been approved by the OMB under the Paperwork Reduction Act of 1995 (44 
U.S.C. 3501-3520) and assigned OMB control number 2577-0169. In 
accordance with the Paperwork Reduction Act, an agency may not conduct 
or sponsor, and a person is not required to respond to, a collection of 
information, unless the collection displays a currently valid OMB 
control number.

    Dated: July 8, 2020.
R. Hunter Kurtz,
Assistant Secretary for Public and Indian Housing.

Attachment A: Mandatory SAFMR Criteria

    Metropolitan FMR areas that meet the following requirements are 
subject to Small Area FMRs consistent with 24 CFR 888.113(c):
    (i) There are at least 2,500 HCV under lease;
    (ii) At least 20 percent of the standard quality rental stock, 
within the metropolitan FMR area is in small areas (ZIP codes) where 
the Small Area FMR is more than 110 percent of the metropolitan FMR;
    (iii) The percentage of voucher families living in concentrated 
low-income areas relative to all renters within the area must be at 
least 25 percent;
    (iv) The measure of the percentage of voucher holders living in 
concentrated low-income areas relative to all renters within these 
areas over the entire metropolitan area exceeds 155 percent (or 1.55);
    (v) The vacancy rate for the metropolitan area is higher than 4 
percent. The vacancy rate is calculated using data from the one-year 
American Community Survey (ACS) tabulations, the vacancy rate is the 
number of Vacant For Rent Units divided by the sum of the number of 
Vacant For Rent Units, the number of Renter Occupied Units, and the 
number of Rented, not occupied units; and
    (vi) The vacancy rate will be calculated from the three most 
current ACS one-year datasets available and average the three values.
    The metropolitan FMR Areas that meet these requirements are as 
follows:

Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area
Bergen-Passaic, NJ HUD Metro FMR Area
Charlotte-Gastonia-Rock Hill, NC-SC HUD Metro FMR Area
Chicago-Joliet-Naperville, IL HUD Metro FMR Area
Colorado Springs, CO HUD Metro FMR Area
Dallas-Plano-Irving, TX Metro Division
Fort Lauderdale-Pompano Beach-Deerfield Beach, FL Metro Division
Fort Worth-Arlington, TX HUD Metro FMR Area
Gary, IN HUD Metro FMR Area
Hartford-West Hartford-East Hartford, CT HUD Metro FMR Area
Jackson, MS HUD Metro FMR Area
Jacksonville, FL HUD Metro FMR Area
North Port-Bradenton-Sarasota, FL MSA
Monmouth-Ocean, NJ HUD Metro FMR Area
Palm Bay-Melbourne-Titusville, FL MSA
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA
Pittsburgh, PA HUD Metro FMR Area
Sacramento-Arden-Arcade-Roseville, CA HUD Metro FMR Area
San Antonio-New Braunfels, TX HUD Metro FMR Area
San Diego-Carlsbad-San Marcos, CA MSA
Tampa-St. Petersburg-Clearwater, FL MSA
Urban Honolulu, HI MSA
Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
West Palm Beach-Boca Raton-Delray Beach, FL Metro Division

Attachment B: Alternative Requirements for Single HCV Funding Contract 
Consortia

    PHAs submitting an application for the demonstration under Category 
B, Consortia with High-Performing FSS Program or Category C, Consortia 
with Small PHA may use these alternative requirements in place of 24 
CFR part 943, subpart B, for Single HCV Funding Contract Consortia if 
selected. Please see Section VI Waivers and Alternative Requirements 
for the Demonstration for further information on alternative 
requirements and Section VII Application Format on applying for the 
demonstration.
    1. Purpose of these alternative requirements.
    These alternative requirements authorize public housing agencies 
(PHAs), consistent with State and local law, to form consortia under 
Section 13 of the United States Housing Act of 1937 (42 U.S.C. 1437k) 
(1937 Act) for the purpose of the HCV mobility demonstration.
    2. Single-HCV Consortium.
    A single HCV funding contract consortium consists of two or more 
PHAs that join together to perform planning, reporting, and other 
administrative and management functions of the Section 8 Housing Choice 
Voucher (HCV) program, as specified in a consortium agreement. Under a 
single HCV funding contract consortium, the consortium becomes a 
separate legal entity and is considered a single PHA for purposes of 
the Section 8 HCV program. A single HCV funding contract consortium 
must operate the Section 8 HCV program in accordance with all 
applicable program regulations. HUD funds the consortium as one PHA and 
applies all reporting and audit requirements accordingly.
    3. Programs covered under these requirements.
    (a) A PHA may enter a single HCV funding contract consortium under 
these requirements solely for the implementation of the demonstration 
under the Section 8 HCV program (including project-based vouchers; 
project-based certificates; and special voucher housing types, 
including the HCV Homeownership Option).
    (b) Moving-To-Work (MTW) PHAs may not form or join a single HCV 
funding contract consortium.
    4. Organization of a single HCV funding consortium.
    (a) A PHA that elects to form a single HCV funding contract 
consortium may do so upon HUD approval after selection for the 
demonstration, and in accordance with HUD-established

[[Page 42912]]

guidelines and instructions. HUD approval after selection for the 
demonstration of a single HCV funding contract consortium will be based 
on the following:
    (1) That all required documentation has been submitted including:
    (i) The Consortium Agreement;
    (ii) The 5-Year Plan and the Annual Plan, as applicable, in 
accordance with 24 CFR part 903 and any other statutory or HUD 
requirements (See section 12 of these requirements, Planning, 
reporting, and financial accountability);
    (iii) A letter of intent signed by the executive director of every 
PHA wishing to join the single HCV funding contract consortium, with an 
accompanying board resolution of each PHA;
    (iv) Supporting legal opinions satisfactory to HUD that the single 
HCV funding contract consortium's jurisdiction is consistent with the 
state and local laws of each consortium member;
    (v) Financial documentation for each PHA wishing to join the single 
HCV funding contract consortium, including a final close-out audit for 
every PHA joining the single HCV funding contract consortium, up to the 
effective date of the consortium;
    (vi) Certification that each PHA in the consortium has resolved all 
outstanding civil rights matters to HUD's satisfaction; and
    (A) The PHA wishing to join takes corrective action to the 
satisfaction of HUD or another entity with authority to enforce a 
corrective action agreement or order; or
    (B) The single HCV funding contract consortium demonstrates to 
HUD's satisfaction that it has assumed liability for taking the 
corrective action; and
    (vii) Any other form of documentation that HUD deems necessary and 
appropriate for approval of the single HCV funding contract consortium;
    (3) The PHA's performance rating under the Section 8 Management and 
Assessment Program (SEMAP), and whether there are any open findings 
from an Office of Inspector General (OIG) audit, HUD Field Office (FO) 
monitoring review, financial audit, and/or any other HUD or HUD-
required review;
    (4) That the financial documentation submitted by each PHA in 
support of single HCV funding contract consortium formation 
demonstrates that the single HCV funding contract consortium will have 
the financial capability, as determined by HUD, to administer the 
programs and activities of the single HCV funding contract consortium, 
including the demonstration;
    (5) Any other factors that may indicate appropriateness of single 
HCV funding contract consortium formation, such as the PHA's capacity 
to administer its Section 8 HCV program, and the existing market 
conditions in the jurisdiction of each PHA joining the single HCV 
funding contract consortium; and
    (6) That all other consortium requirements are met.
    (b) A PHA that elects to form a single HCV funding contract 
consortium must enter into a consortium agreement, which shall meet the 
minimum requirements established in section 6 of these requirements 
(Elements of a single HCV funding contract consortium agreement) of 
these requirements. The executed consortium agreement must be submitted 
to HUD, and HUD may require modification to the consortium agreement 
before approving the formation of the single HCV funding contract 
consortium.
    (c) PHAs joining a single HCV funding contract consortium must 
adopt a new fiscal year end for the consortium.
    (d) The single HCV funding contract consortium must be administered 
in accordance with the applicable provisions of these requirements; the 
consortium agreement; the PHA Plan, as applicable; other applicable HUD 
regulations and requirements; and State and local law.
    5. Jurisdiction of a single HCV funding contract consortium.
    (a) A single HCV funding contract consortium shall operate in a 
single consortium-wide jurisdiction composed of the combined 
jurisdictions of all consortium members. Jurisdictional boundaries 
between individual consortium members will cease to exist for purposes 
of HCV program administration during the term of the consortium.
    (b) The single HCV funding contract consortium jurisdiction must be 
consistent with the State and local law of each consortium member.
    6. Elements of a single HCV funding consortium agreement.
    (a) The single HCV funding contract consortium agreement governs 
the formation and operation of the consortium and must specify the 
following:
    (1) The name of each consortium member under the consortium 
agreement;
    (2) The functions to be performed by each consortium member during 
the term of the consortium, including for the demonstration;
    (3) The structure of the single HCV funding contract consortium, 
which shall address, at a minimum, the establishment of a board of 
directors or similar governing body and designated officials;
    (4) The process for merging the consortium members' waiting lists 
upon formation of the single HCV funding contract consortium, including 
the adoption of waiting list preferences (e.g., homeless) by the single 
HCV funding contract consortium. This process must not have the purpose 
or effect of delaying or otherwise denying admission to the program 
based on race, color, national origin, sex, religion, disability, or 
familial status of any member of the applicant family;
    (5) The terms under which a PHA may join or withdraw from the 
single HCV funding contract consortium. The consortium agreement shall 
conform to section 7 of these requirements (Withdrawals from or 
additions to a single HCV funding contract consortium) of these 
requirements;
    (6) How new incremental vouchers under a special purpose voucher 
program will be distributed among consortium members upon dissolution 
or withdrawal from the consortium; and
    (7) Which consortium member, upon dissolution or withdrawal, shall 
have jurisdiction over converted projects with overlapping 
jurisdictions under a multifamily housing tenant protection action.
    (b) The agreement must acknowledge that all consortium members are 
subject to the single HCV funding contract consortiums' PHA Plan.
    (c) The agreement must be signed by an authorized representative of 
each consortium member.
    7. Withdrawals from or additions to a single HCV funding contract 
consortium.
    (a) Withdrawal refers to one or more consortium members leaving the 
single HCV funding contract consortium without resulting in dissolution 
of the single HCV funding contract consortium.
    (b) Withdrawals from a single HCV funding contract consortium may 
not occur until the initial consortium term has expired, which is the 
term of participation in the demonstration. HUD may, upon showing of 
good cause, allow withdrawals from a single HCV funding contract 
consortium before completion of the initial term.
    (c) If the consortium has any outstanding civil rights matters, 
withdrawals from a single HCV funding contract consortium may not occur 
unless the withdrawal is consistent with the action(s) to resolve such 
matters.
    (d) To provide for orderly transition, withdrawal of a PHA must 
take effect on the last day of the consortium's fiscal

[[Page 42913]]

year, and addition of a PHA must take effect on the first day of the 
consortium's fiscal year. The single HCV funding contract consortium 
must notify HUD in writing of any additions or withdrawals at least 120 
days in advance. This notification must include submission of the 
withdrawing member's replacement 5-Year Plan and Annual Plan, as 
applicable, in accordance with 24 CFR part 903 and any other statutory 
or HUD requirements.
    (e) Upon withdrawal from the single HCV funding contract 
consortium, the withdrawing member must offer to each applicant 
currently on the single HCV funding contract consortium's waiting list 
the opportunity to be placed on the withdrawing member's waiting list, 
with the date and time of their original application to the single HCV 
funding contract consortium's waiting list. These applicants must not 
be considered nonresident applicants (for the purposes of restriction 
of portability under Sec.  982.353(c)) if the applicant was a resident 
applicant at the time of application to the single HCV funding contract 
consortium's waiting list.
    (f) Upon a member's withdrawal from the single HCV funding contract 
consortium, vouchers and funding, including net restricted assets and 
unrestricted net assets, will be distributed to the withdrawing member 
as specified in section 9 of these requirements (voucher and funding 
distribution upon dissolution or withdrawal) of these requirements.
    8. Dissolution of a single HCV funding contract consortium.
    (a) A single HCV funding contract consortium may not be dissolved 
during the demonstration. HUD may, upon showing of good cause, allow 
dissolution of a consortium prior to completion of the demonstration. A 
single HCV funding contract consortium will continue to exist beyond 
the demonstration, unless dissolved.
    (b) If the consortium has any outstanding civil rights matters, 
dissolution of a single HCV funding contract consortium may not occur 
unless the dissolution is consistent with the action(s) to resolve such 
matters.
    (c) To provide for orderly transition, dissolution of the single 
HCV funding contract consortium must take effect on the last day of the 
consortium's fiscal year. The single HCV funding contract consortium 
must notify HUD in writing of dissolution at least 120 days in advance 
of the dissolution effective date. This notification must include 
submission of all members' replacement 5-Year Plans and Annual Plans, 
as applicable, in accordance with 24 CFR part 903 and any other 
statutory or HUD requirements.
    (d) Upon dissolution, all withdrawing members must offer to each 
applicant currently on the single HCV funding contract consortium's 
waiting list the opportunity to be placed on all of the withdrawing 
members' waiting lists, with the date and time of their original 
application to the single HCV funding contract consortium's waiting 
list. These applicants must not be considered nonresident applicants 
(for the purposes of restriction of portability under Sec.  982.353(c)) 
if the applicant was a resident applicant at the time of application to 
the single HCV funding contract consortium's waiting list.
    (e) Upon dissolution, vouchers and funding, including net 
restricted assets and unrestricted net assets, will be distributed 
among consortium members as specified in section 9 of these 
requirements (voucher and funding distribution upon dissolution or 
withdrawal) of these requirements.
    9. Voucher and funding distribution upon dissolution or withdrawal.
    (a) Vouchers will be distributed in the following manner upon 
dissolution or withdrawal:
    (1) Each consortium member will leave the consortium upon 
dissolution or withdrawal with at least the same number of authorized 
baseline units that the consortium member brought into the consortium 
at the time of its formation. HUD may, for good cause, allow for an 
alternative distribution of baseline units.
    (2) Each consortium member shall receive contract renewal funding 
allocations based on the number of leased vouchers located within their 
original jurisdiction at the time of withdrawal or dissolution, up to 
their original baseline number. HUD may, for good cause, allow for an 
alternative distribution of leased vouchers.
    (3) Tenant protection vouchers allocated to cover a public housing 
demolition, disposition, or conversion action will remain with the PHA 
that has ownership over the property. Tenant protection vouchers 
allocated to cover a multifamily housing conversion action shall remain 
with the PHA that has jurisdiction over the converted project. 
Administration of tenant protection vouchers under converted projects 
with overlapping jurisdictions shall remain with the PHA that has 
jurisdiction over the converted project as specified in the consortium 
agreement.
    (4) New incremental vouchers under a special purpose voucher 
program will be distributed as specified in the consortium agreement, 
provided that such voucher distribution is made in accordance with 
program requirements under each respective special purpose voucher 
program.
    (b) Funding will be distributed in the following manner upon 
dissolution or withdrawal:
    (1) Budget authority will be divided proportionately, based on the 
percentage of all leased units in the consortium that each consortium 
member will receive.
    (2) Administrative fees will be paid to the withdrawing PHA and the 
remaining consortium per the current appropriations requirements.
    (3) Net Restricted Assets and Unrestricted Net Assets will be 
distributed based upon the percentage of the initial balance that was 
contributed by each consortium member.
    10. The relationship between HUD and a single HCV funding contract 
consortium.
    (a) HUD has a direct relationship with the single HCV funding 
contract consortium, the same as it would have with any other PHA. 
Program funds will be disbursed to the single HCV funding contract 
consortium in accordance with the consortium's ACC. Funding must be 
used in accordance with the consortium agreement, the PHA Plan, the 
demonstration, and HUD regulations and requirements.
    (b) HUD may take any of the remedies described in the ACC against 
an individual member in a single HCV funding contract consortium, or 
against the single HCV funding contract consortium as a whole, if it 
determines that either has substantially violated--or is improperly 
administering--the requirements of the HCV program or the 
demonstration.
    11. Organizational costs and administrative fees.
    (a) The administrative fee for a single HCV funding contract 
consortium will be determined based on the published administrative fee 
rates for the area in which the single HCV funding contract consortium 
has the greatest proportion of its participants on a date in time and 
the total number of vouchers under lease for the single HCV funding 
contract consortium as of the first of the month, up to the baseline 
number of vouchers under the single HCV funding contract consortium's 
ACC.
    (b) A single HCV funding contract consortium may apply to HUD for 
blended rates, which are determined based on a weighted average of the 
published administrative fee rates for all areas in which program 
participants are located within the single HCV funding contract 
consortium and all participants

[[Page 42914]]

under lease in each of the areas on a date in time. The blended rates 
will be based on the published administrative fee rate for each 
consortium member, effective for the year for which the blended rate is 
requested. Blended rates will only be applied if they result in a 
higher administrative fee rate for the single HCV funding contract 
consortium. Blended rates apply only to the year for which requested.
    (c) If appropriations are available, a single HCV funding contract 
consortium may be eligible for a higher administrative fee in 
accordance with 24 CFR 982.152(b)(2) if it operates over a large 
geographic area.
    (d) If appropriations are available, a single HCV funding contract 
consortium may be eligible for administrative fees to cover 
extraordinary costs determined necessary by HUD, in accordance with 24 
CFR 982.152(a)(1)(iii)(C), during the initial year of operation of the 
consortium to provide for the organization and implementation of the 
single HCV funding contract consortium.
    12. Planning, reporting, and financial accountability.
    (a) A single HCV funding contract consortium is considered one PHA 
for purposes of Section 8 HCV program administration, including but not 
limited to, program accounts and records, audit requirements, and all 
PHA responsibilities under the ACC, the PHA administrative plan, and 
HUD regulations and other requirements, including the demonstration.
    (b) Planning, reporting, and financial accountability apply to a 
single HCV funding contract consortium as follows:
    (1) Upon creation of the single HCV funding contract consortium, 
each member's assets, liabilities, and equity accounts, as related to 
the HCV program, are consolidated and reported on a consolidated 
balance sheet for purposes of single reporting in the Financial 
Assessment Subsystem for Public Housing Agencies (FASS-PH) and the 
Voucher Management System (VMS).
    (2) Prior to entering a single HCV funding contract consortium, 
each PHA must agree to the completion of a final audit to close-out 
program accounts for all HCV programs, up to the effective date of the 
consortium. The final audit must be completed in accordance with 24 CFR 
982.159. Once the audit is completed, remaining funds from all the 
PHAs' accounts must be transferred to the consortium.
    (3) During the term of the consortium agreement, the single HCV 
funding contract consortium must submit a 5-Year Plan and Annual Plan, 
as applicable, for the consortium, in accordance with 24 CFR part 903 
and any other statutory or HUD requirements. For any programs not 
covered by the single HCV funding contract consortium (e.g., a 
consortium member administers a public housing program separately from 
the single HCV funding contract consortium), consortium members must 
submit a separate 5-Year Plan and Annual Plan to HUD for those 
programs, as applicable, in accordance with 24 CFR part 903 and any 
other statutory or HUD requirements.
    (4) During the term of the consortium agreement, the single HCV 
funding contract consortium must have a single Section 8 HCV 
administrative plan for the consortium, in accordance with 24 CFR 
982.54 (Administrative plan).
    (5) The single HCV funding contract consortium must maintain 
records and submit reports to HUD as a single PHA for purposes of 
Section 8 HCV program administration and the demonstration, in 
accordance with HUD regulations and requirements that account for all 
activities of the consortium. All consortium members will be bound by 
the 5-Year and Annual Plans and reports submitted to HUD by the single 
HCV funding contract consortium for programs covered by the consortium.
    (6) Financial accountability rests with the single HCV funding 
contract consortium and, thus, HUD will apply independent audit and 
performance assessment requirements on a consortium-wide basis.
    (7) A single HCV funding contract consortium must keep a copy of 
the consortium agreement on file for inspection. The consortium 
agreement must also be a supporting statement to the PHA plan.
    13. Responsibilities of a single HCV funding contract consortium.
    Each consortium member is responsible for the performance of the 
consortium and has an obligation to assure that all program funds are 
used in accordance with HUD regulations, requirements, and that the 
programs under the consortium are administered in accordance with HUD 
regulations and requirements, including the demonstration. Any breach 
of program requirements is a breach of the consortium ACC, so each 
consortium member is responsible for the performance of the consortium 
as a whole.
    14. Responsibilities of member PHAs.
    Despite participation in a consortium, each member PHA remains 
responsible for its own obligations under its ACC with HUD. This means 
that each member PHA has an obligation to assure that all program 
funds, including funds paid to the lead agency for administration by 
the consortium, are used in accordance with HUD regulations and 
requirements, and that the PHA's program is administered in accordance 
with HUD regulations and requirements, including the demonstration. Any 
breach of program requirements with respect to a program covered by the 
consortium agreement is a breach of the ACC with each of the member 
PHAs, so each PHA is responsible for the performance of the consortium.

[FR Doc. 2020-15037 Filed 7-14-20; 8:45 am]
BILLING CODE P